S&P lifts Tunisia to Group 8

Standard & Poor's said it raised its Banking Industry Country Risk Assessment on the Republic of Tunisia to Group 8 from Group 9.

This action reflects an improvement in the industry risk, evidenced by a gradual enhancement in asset quality and the strengthening of the banking system regulatory framework, the agency said.

S&P said that its assessment of economic risk in the Republic of Tunisia (foreign currency BBB/stable/A-3, local currency A/stable/A-1) factors in the stable macroeconomic conditions and the good growth prospects for the Tunisian economy despite its dependence on some cyclical sectors.

The improvement in banking industry country risk is a positive element that underpins all bank credit ratings in Tunisia, the agency said, noting that this action alone will not lead to any upgrades of Tunisian financial institutions, but combined with positive trends in other factors specific to an individual bank could contribute to a change in the ratings on a bank.

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