Fitch keeps Sotuver long-term rating on evolving watch

Fitch Ratings said it is keeping Societe Tunisienne de Verreries' (Sotuver) B+(tun) national long-term rating on Rating Watch evolving. Meanwhile, Sotuver's national short-term rating is affirmed at B(tun).

The Rating Watch evolving is pending the takeover of Sotuver by Societe d'Exploitation de Verreries au Maroc, which is increasingly being delayed by legal processes. The agency said Sotuver needs capital support and technical assistance for its capacity upgrade, particularly in light of favorable demand prospects. However, the delays so far are increasing the uncertainty that the takeover will be successful.

The national ratings continue to reflect Sotuver's quasi-monopoly position in the Tunisian glass container market as well as the challenges it faces with the removal of import tariffs on glass containers from European Union since January, Fitch said.

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