S&P: Arab Tunisian Bank Assigned 'BB-/B' Counterparty Ratings,

Press Release:

S&P: Arab Tunisian Bank Assigned 'BB-/B' Counterparty Ratings, Outlook Stable; 'BBpi' Rtg Withdrawn

Press Release
News Article January 2004

S&P: Arab Tunisian Bank Assigned 'BB-/B' Counterparty Ratings, Outlook Stable; 'BBpi' Rtg Withdrawn

PARIS Jan. 12, 2004--Standard & Poor's Ratings Services said today that it had assigned its 'BB-' long-term and 'B' short-term counterparty credit and certificate of deposit ratings to Arab Tunisian Bank (ATB), Tunisia's ninth-largest bank, and at the same time withdrew its 'BBpi' rating on the bank. The outlook is stable.

"The ratings reflect the bank's majority ownership (64.24%) by Jordan-based Arab Bank PLC (unrated) and its satisfactory commercial profile," said Standard & Poor's credit analyst Ekaterina Trofimova.

These elements are offset by the bank's weak asset quality, limited capitalization, and relatively low profitability by international standards. Additionally, the bank's limited size is a disadvantage in facing domestic competition. With assets totaling Tunisian dinar (TND) 1.16 billion ($851 million) at June 30, 2003, and a network of 34 branches, ATB is the ninth-largest bank in Tunisia.

Standard & Poor's believes that ATB's size, as well as its asset quality, will continue to be its main weaknesses in the near future. Although ATB's asset quality is slightly better than the domestic average, it is weak by international standards due to the relatively high risk of the Tunisian economy. Similarly, ATB's profitability is adequate in a domestic context, but remains relatively low by international standards. ATB's liquidity position is also adequate, supported by its net lender position on the interbank market. The expansion of loans and contract maturities will make liquidity management more challenging, however.

"The potential for a higher credit ratings depends on ATB improving asset quality and increasing profitability by optimizing its cost structure and enhancing core revenue generation, and also hinges on the bank achieving stronger capitalization and on improvements in the still risky economic and financial environment in Tunisia," added Ms. Trofimova.

This press release is provided in good-faith by Chiltern Magazine Services Ltd ("CMS") as a service to users of www.telecomsinfo.com. Whilst all care is taken in sourcing and preparing material includede here, any error or incorrect content cannot form the basis for any legal action against the site-owner. Users are advised to check the accuracy of any statements before relying upon them. Likewise, any forward-looking statements made by the author of the press release should be treated as such.

CMS, P&A House, Alma Road, Chesham, Bucks. HP5 3HB, UK
Tel: +44 (0)1494 771734
Fax: +44 (0)1494 778994
e-mail: Editor, CMS Businessinfo

For more information about us, visit CMS Businessinfo.