S&P affirms Bankmed

S&P said it affirmed the B-/B long- and short-term issuer credit ratings on Bankmed sal.

The outlook is stable.

Bankmed's asset quality metrics have dropped following classification of two large loans as nonperforming in early 2017, which brought the share of nonperforming loans to about 10% of the loan book, the agency explained.

S&P also noted that coverage of nonperforming loans by specific and collective provisioning was modest, at around 63.5% as of July 1.

“We understand that this is partly due to enhanced collateralization of certain large loans, including by real estate outside Lebanon, but note that this increases the bank's reliance on valuation of the collateral and puts additional pressure on profitability,” the agency said in a news release.

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