Fitch Ratings has assigned Arab Tunisian Lease’s (ATL) proposed “ATL 2021-1” senior unsecured debt issue a National Long-Term Rating of ‘BBB+(tun)’, it said in a statement Thursday.
The debt instrument, which totals up to TND40 million, comprises two tranches. The first one (Categorie A) will mature in five years with a fixed rate of 9.6% and the second one (Categorie B) will mature in seven years (including an initial two-year grace period), with a fixed rate of 9.8%, said the rating agency.
It added that ATL will use the proceeds of the proposed issue for general leasing and factoring purposes, including the refinancing of existing debt.
The debt issue rating is aligned with ATL’s company’s National Long-Term rating of ‘BBB+'(tun), reflecting Fitch’s views that the likelihood of default on any given senior unsecured obligation is the same as the likelihood of default of the company.
“This is because default on any material class of senior unsecured obligations would be treated by Fitch as a default of the issuer,” said Fitch.
National Ratings reflect Fitch’s assessment of the company’s creditworthiness relative to the country’s best credit and to that of peers operating within that country.
