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Fitch Affirms Attijariwafa Bank at 'BB+'; Outlook Stable

Fitch Ratings-London/Paris - Fitch Ratings has affirmed Attijariwafa Bank's (AWB) ratings at Long-term foreign currency Issuer Default (IDR) 'BB+' with Stable Outlook, Long-term local currency IDR 'BBB-' (BBB minus) with Stable Outlook, Short-term foreign IDR 'B', Short-term local currency IDR 'F3', Individual 'C/D' and Support '3'. The National Long- and Short-term ratings are affirmed at 'AA-(AA minus)(mar)' with Stable Outlook and 'F1+(mar)', respectively. The Support Rating Floor is affirmed at 'BB+'.

The Long and Short-term IDRs, Long- and Short-term National Ratings and Support Rating are based on the potential support expected from the Moroccan authorities. The Individual Rating reflects AWB 's strong domestic franchise, satisfactory profitability and adequate liquidity. They also reflect its high single-name concentration, large but declining exposure to the sovereign, still significant impaired loans, and weak capitalisation.

The bank's strategic plan is to position itself as a leading bank in north Africa through organic and external growth and to retain its leadership in most client and product segments in Morocco. Its international subsidiaries accounted for 15% of consolidated assets at end-2007. In 2007 AWB 's presence in Senegal was boosted by the merger of its two wholly-owned local subsidiaries and by the acquisition of a 79.15% stake in Compagnie Bancaire de l'Afrique Occidentale (CBAO). In Fitch's view, AWB 's plan sets ambitious targets and will require additional funding to keep capital ratios at an adequate level. AWB 's operating profit rose 19% in 2007 as loan growth boosted net interest and fees. Non-recurrent operating expenses weighed on cost efficiency, and the cost-to-income ratio slightly deteriorated to 50.1%. Loan loss provisions, at a low 0.6% of gross loans in 2007, mainly related to write-offs. The impaired loan ratio has decreased to 6.5% due to rapid credit growth and strengthened risk procedures. Unreserved loans represented a moderate 8.5% of equity at end-2007. The bank is also exposed to Moroccan sovereign risk through its large government bond portfolio (MAD11bn at end-Q108). Liquidity is adequate, with ample surplus from customer deposits placed in local government bonds. Market risk is moderate, although increasing. Despite Tier 2 note issues in 2007, capitalisation remains weak given AWB 's risk profile and rapid growth strategy. Further Tier 2 note issues are planned in 2008.

AWB is the largest player in Morocco's commercial banking market, where it controls a deposit market share of around 25.7%. AWB 's H107 consolidated financials were its first under IFRS.

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Note to Editors:
Fitch's National ratings provide a relative measure of creditworthiness for rated entities in countries with relatively low international sovereign ratings and where there is demand for such ratings. The best risk within a country is rated 'AAA' and other credits are rated only relative to this risk. National ratings are designed for use mainly by local investors in local markets and are signified by the addition of an identifier for the country concerned, such as 'AAA(mar)' for National ratings in Morocco. Specific letter grades are not therefore internationally comparable.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.

For more information, please contact:
Sophie Martin-Glinel
Paris
Tel: +33 1 44 29 92 72

Sonia Trabelsi
Tunis
Tel: +216 71 840 902

Francoise Alos
Paris
Tel: +33 1 44 29 91 22

Hannah Warrington
London
Tel: +44 (0) 207 417 6298

© Press Release 2008