Wednesday, Jul 20, 2011
DUBAI (Zawya Dow Jones)--Moody's changed its outlook to negative on the ratings of four Lebanese banks, citing the slowdown of the Lebanese economy, the country's fragile political situation and the unrest in neighboring Syria, according to a statement late Monday.
The agency changed to negative from stable the outlooks on the ratings of Bank Audi, Blom Bank (BLBD.LE), Bank of Beirut (BOB.LE) and Byblos Bank (BYB.LE).
Moody's said "the rating announcements reflect the slowdown in the Lebanese economy -- amidst domestic political uncertainty in H1 2011 and ongoing unrest in neighbouring Syria -- which has negatively affected domestic credit conditions and could weaken rated banks' asset quality and profitability."
Lebanon's economic growth is seen slowing down to 2.5% in 2011 from over 7% in the past four years, as the tourism and real estate industry are under pressure, Moody's said.
"Increased uncertainties, both domestic and regional, affect Lebanese banks' operating environment and heighten the risks to their asset quality and performance," Moody's said.
The negative outlook on the country's two largest lenders, Bank Audi and Blom Bank, also reflect their exposure to Egypt and Syria. Byblos' exposure to these countries is moderate, while Bank of Beirut's is limited, it added.
-By Nicolas Parasie, Dow Jones Newswires; +9714 446-1681; nicolas.parasie@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
20-07-11 0525GMT
