Fitch ups outlook on three Israeli banks

Fitch Ratings said it revised the issuer default outlooks of Bank Hapoalim, Bank Leumi and First International Bank of Israel to positive from stable and upgraded the individual rating for First International.

The other ratings for the banks are affirmed, Fitch said.

The change to the outlooks follows the change in the outlook for Israel's Sovereign rating, also to positive from stable, the agency said.

"An upgrade to the sovereign rating would indicate an increased ability for Israel to provide support for its banking system in a time of need," said Anthony Walker, Director with Fitch's bank team.

"As a result, the positive outlook reflects the potential for Israeli banks' support-driven ratings to be upgraded along with the sovereign."

The factors driving the upgrade of the Sovereign rating include an improved macroeconomic environment, which has had a positive impact on the banking sector, the agency said, adding that affected ratings include Bank Hapoalim's issuer default BBB+, short-term F2, individual C and support 2; Bank Leumi's issuer default BBB+, short-term F2, individual C and support 2; and First International's issuer default BBB, short-term F3, individual upgraded to C/D from D and support 2. The outlook is positive.

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