Moody’s lowers four Tunisia banks view to negative

Moody's Investors Service said it changed the outlooks to negative from stable on the local-currency deposit ratings of Amen Bank, Banque de Tunisie, Banque Internationale Arabe de Tunisie and Societe Tunisienne de Banque.

Moody's also affirmed the ratings on the banks.

The negative outlook on the four Tunisian banks' deposit ratings was driven by an assessment that the Tunisian government's capacity to support the banks is deteriorating, indicated by worsening fiscal deficit and debt trajectory and signaled by a recent decision to change the outlook on Tunisia's government bond rating to negative from stable, Moody’s explained.

The ratings on the banks were affirmed despite an expectation that challenges in the operating environment will be sustained over the next 12 to 18 months, the agency said.

That is because the banks' credit profiles will remain broadly stable at currently weak levels over that time frame and there is a very high probability of government support for the banks if needed, Moody’s said.

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