Fitch may cut four Tunisian leasing companies

Fitch Ratings said it placed Tunisie Leasing, Compagnie Internationale de Leasing, El Wifack Leasing and Hannibal Lease's national long-term ratings on Rating Watch Negative due to the tightening of the local bond market, a major source of liquidity for these leasing companies and the prevailing difficult operating environment.

The agency has also affirmed Modern Leasing, Arab International Lease and Attijari Leasing's national long-term ratings at A-(tun), BBB+(tun) and BB+(tun), respectively. The outlooks are stable.

Fitch also affirmed Arab International Lease's national senior debt rating at BBB+(tun) and Attijari Leasing's national senior debt rating at BB+(tun) and national subordinated debt at B+(tun).

Tunisie Leasing, Compagnie Internationale de Leasing, El Wifack Leasing and Hannibal Lease's national ratings of BBB+(tun), BBB(tun), BB+(tun) and BB+(tun), respectively, are stand-alone driven. The rating actions on the four leasing companies reflect concerns over their liquidity arising from the prevailing difficult conditions in the local bond market, the agency said.

The Tunisian bond market is a major source of funding for these leasing companies, providing about 33%, 60%, 48% and 18% respectively of their funding at end-2010, the agency added.

Modern Leasing, Arab International Lease and Attijari Leasing's national ratings are support-driven. Modern Leasing's ratings reflect the support that may be forthcoming from its majority shareholder Banque de l'Habitat, the agency said.

Arab International Lease's ratings are underpinned by the support, in case of need, that it can expect from its ultimate parent Groupe BPCE (A+/stable/F1+) through the latter's subsidiary Banque Tuniso-Koweitienne, the agency added.

Attijari Leasing's ratings reflect its integration within the Moroccan group Attijariwafa Bank (BB+/stable/B) through the latter's subsidiary Attijari Bank Tunisie and the support it could expect from Attijariwafa Bank, the agency said.

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