S&P lowers Arab Tunisian Bank

Standard & Poor's said it lowered the long-term counterparty credit ratings on Arab Tunisian Bank to BB- from BB and affirmed its B short-term counterparty credit rating.

The outlook is negative.

The downgrade follows the lowering of the long-term ratings on the Republic of Tunisia, S&P said. The agency said it believe that risks to Tunisia's transition to democracy have increased markedly in recent weeks.

The current political turmoil and lack of a government with a sufficient mandate is likely to hamper the pace of economic reform, threaten fiscal consolidation and weaken the economy further, S&P said.

Tunisian banks are more vulnerable to the deteriorating sovereign creditworthiness and economy, the agency said.

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