Fitch puts El Wifack on positive watch

Fitch Ratings said it placed El Wifack’s national ratings on Rating Watch positive, following news of its strategic partnership with the Islamic Corp. for the Development of the Private Sector.

Under the terms of the agreement, Islamic Corp. will become the largest shareholder with an expected 30% stake in El Wifack, Fitch said.

The increase in capital is expected to occur in June and July 2015. Islamic Corp. also will provide the leasing company with technical assistance to facilitate its conversion into a universal Islamic bank, the agency said.

The ratings on positive watch include El Wifack Leasing’s national long-term rating of BBB-(tun), national short-term rating of F3(tun) and national senior unsecured debt rating of BBB-(tun).

Fitch said it will resolve the positive watch once Islamic Corp.’s equity stake purchase is completed, which will likely be by the third-quarter of 2015.

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