S&P lowers Tunisia, Central Bank of Tunisia

Standard & Poor's said it lowered the long- and short-term foreign-currency sovereign credit ratings on the Republic of Tunisia to BB/B from BBB-/A-3, along with the long- and short-term local-currency ratings to BB/B from BBB/A-3.

The outlook is stable.

S&P also said it lowered its long- and short-term foreign-currency issuer credit ratings on the Central Bank of Tunisia to BB/B from BBB-/A-3 and lowered the long- and short-term local-currency ratings to BB/B from BBB/A-3.

The outlook is stable.

The recovery rating on the bank is 3, indicating 50% to 70% expected recovery in a default.

The transfer and convertibility assessment is revised to BB+.

Although overall political stability since the removal of President Ben Ali in early 2011 stayed within expectations, S&P said it does not believe that Tunisia's transitional government will be able to take proactive corrective measures against a weakening economic and financial backdrop that would be consistent with an investment-grade rating.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.