S&P: Arab Tunisian Bank view to negative

S&P said it revised the outlook on Arab Tunisian Bank to negative from stable.

The agency also said it affirmed the B+ long-term and B short-term counterparty credit ratings on the bank.

The outlook revision reflects an observation that Tunisia faces significant short- and medium-term economic challenges, owing to sluggish growth, institutional rigidities stemming from a weak banking system, strained labor market and weak investment code, S&P said.

The current coalition government in Tunisia is struggling to create the conditions needed to accelerate economic growth, improve standards of living and reduce unemployment, the agency said.

Social tensions remain significant, S&P added, and internal political divisions continue to hinder the implementation of structural reforms.

The terrorism threat also remains relatively high, the agency said.

Tourism receipts have collapsed since the deadly terrorist attacks last year, S&P explained, and this has weighed heavily on the economy.

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