(The following statement was released by the rating agency)     Feb 13 - Fitch Ratings has affirmed the National Ratings of Arab International Lease (AIL), Arab Tunisian Lease (ATL), Attijari Leasing (AL), Compagnie Internationale de Leasing (CIL), El Wifack Leasing (EWL), Hannibal Lease (HL), Modern Leasing (ML), and Tunisie Leasing (TL). A full list of rating actions is at the end of this comment.   RATING ACTION RATIONALE  The affirmation of the eight entities' National Ratings follows a full review of the Tunisian leasing sector. National Ratings reflect the creditworthiness of an issuer relative to the best credit and to peers in the country.   AIL, ATL, AL and ML's National Ratings are support-driven, while CIL, EWL, HL,  and TL's are driven by the companies' creditworthiness on a standalone basis.  The affirmation of AIL, ATL, AL and ML's National Ratings reflects stability in  Fitch's opinion on the willingness and capacity of respective ultimate  shareholders to support their subsidiary if need be. The Outlooks on the  respective National Long-term Ratings are Stable, except for ML (see Ratings  Drivers and Sensitivity).  The affirmation of CIL, EWL, HL and TL's National Ratings reflects Fitch's  unchanged view on these leasing companies' creditworthiness relative to peers  based on funding, liquidity, asset quality, capital adequacy, performance and  corporate governance. The Outlook on the respective National Long-term Rating is Stable.  RATING DRIVERS AND SENSITIVITY - AIL, AL, ATL, ML  ML's ratings are underpinned by Fitch's assessment of the probability of support it is likely to receive from its majority shareholder, Banque de l'Habitat (BH), if required. In Fitch's view, this support could ultimately be provided by the  state and flow through BH, given BH's relatively weak creditworthiness on a  standalone basis. ML is (directly and indirectly) 57%-owned by BH, which in turn is 57%-controlled by the Tunisian state. The Negative Outlook on ML's National  Long-term Rating reflects that on Tunisia's Long-term IDR.  Any deterioration in Fitch's assessment of BH's and/or the Tunisian state's  propensity and/or ability to support ML would likely result in a downgrade of  the latter's ratings. Conversely, an upgrade of ML's ratings could be triggered  by an increase in BH's control or deeper integration with BH, or an upgrade of  Tunisia's Long-term local currency IDR.  AIL's ratings are underpinned by the support that it could expect to receive, if required, from its main direct shareholder, Banque Tuniso-Koweitienne (BTK), and from its ultimate parent, France's Groupe BPCE (GBPCE, 'A+'/Negative/'a-'). AIL  is 95%-owned by BTK, which in turn is 60%-owned by GBPCE. Although GBPCE has  strong capacity to support AIL (as indicated by its 'a-' Viability Rating),  Fitch views the probability of such support as moderate given that GBPCE is not  a direct majority shareholder and AIL's limited strategic importance to GBPCE  and poor integration within the French banking group.  AIL is moderately, albeit increasing, integrated within BTK, which mainly  controls AIL's commercial strategy, credit, liquidity and interest rate risks  through periodic committees. Closer integration with GBPCE would result in an  upgrade of AIL's National Ratings.   A downgrade of AIL's National Ratings could be triggered by a decrease of BTK's  control of AIL, or if GBPCE materially reduced its interest in BTK or if GBPCE's Viability Rating was downgraded.  AL's National Ratings are underpinned by the limited probability of support it  is likely to receive from its ultimate shareholder, the Moroccan group  Attijariwafa Bank (AWB, 'BB+'/Stable/'bb-'), if needed. AL's capital is 65.2%  held by AWB's Tunisian subsidiary, Attijari Bank Tunisie (ABT), which in turn is 54.6%-controlled by the holding company Andalucarthage, which is almost  exclusively owned by AWB. Fitch believes there is a high propensity of support  from ABT and, ultimately, AWB, for AL, if needed. However, the probability of  such support is only limited given AWB's restricted creditworthiness (as  indicated by AWB's 'bb-' Viability Rating). ABT is not rated by Fitch.   An upgrade of AL's National Ratings could be triggered by a significant increase in AWB's control of the company and closer integration with AWB. Conversely, a  downgrade of AL's National Ratings could result if AWB materially reduced its  interests in ABT (and subsequently in AL) or following a significant downgrade  of AWB's Viability Rating.   ATL's National Ratings are underpinned by the limited probability of support it  is likely to receive from its ultimate shareholder, the Jordan-based Arab Bank  Plc (AB, 'A-'/Stable/'a-'), if needed, through the latter's Tunisian subsidiary, Arab Tunisian Bank (ATB, 'BBB-'/ Negative/'b').   ATL's capital is 33% held by ATB, which in turn is 64.2%-controlled by AB.  Although AB has strong capacity to support ATL (as indicated by its 'a-'  Viability Rating), Fitch believes the probability of support from AB is only  limited given that it is not a direct shareholder and its modest interests in  ATL's capital.   An upgrade of ATL's National Ratings could be triggered by a significant  increase in ATB's control of the company. Conversely, a downgrade of ATL's  National Ratings could occur if ATB reduces its ownership in ATL, or if AB  materially reduces its interests in ATB (and subsequently in ATL) or there is a  significant downgrade of AB's ratings, all of which Fitch considers unlikely in  the foreseeable future.   RATING DRIVERS - CIL, EWL, HL, TL  Liquidity remains a key rating driver at most Tunisian leasing companies. CIL,  HL and TL's funding profile is significantly geared towards bond issuance.  Therefore, liquidity eased at these leasing companies in 2012 when the bond  market progressively reopened, although at higher costs. The availability of  funding from multilateral/supranational financial institutions has also provided some relief to TL, HL and CIL. Reliance on potentially more volatile short-term  interbank lines and commercial paper remains a weakness at HL. EWL's funding is  mainly in the form of medium-term bank credit lines. EWL maintains some  committed undrawn bank lines, which contribute to build a buffer against the  risk of liquidity deterioration in Tunisia's financial sector.  Leasing companies backed to a bank shareholder (TL and EWL) potentially benefit  from funding support from their respective parent, which is a strength (as is  also the case to some extent for AIL, AL, ATL and ML). At end-H112, the share of this parent funding was not material for both TL and EWL, highlighting their  ability to tap external funding sources.   EWL, HL and TL's Tier 1 capital ratios have progressively declined with the  expansion in loan volumes in the recent years. However, cash injections took  place in Q412 (TL) or are planned in early 2013 (HL, EWL), which will boost  capital ratios at those companies.   The asset quality of CIL, EWL, HL and TL, although under pressure, had not  deteriorated at end-Q312, although Fitch will be in a better position to assess  credit risk upon publication of audited year-end figures. TL's and EWL's  impaired loan ratios are the best of the Tunisian leasing sector, reflecting  their prudent credit risk policies, whereas CIL and HL's, albeit higher than  TL's and EWL's, remain better than the market average (9.7% at end-June 2012).  Coverage ratios have plummeted since January 2011 with the rise in impaired  loans and the loosening of provisioning criteria at some of the leasing  companies. At end-June 2012, net impaired loans/equity ratios were the lowest at EWL and TL, while this remained acceptable for CIL and reached a more  significant 40% at HL.  Overall, profitability indicators of CIL, EWL, HL and TL improved in H112 after  a difficult 2011 year, a trend Fitch expects to have continued in H212.  Improving performance was driven by strong new loan increases (TL, EWL and HL),  coupled with resilient net interest margins despite higher funding costs  (compared to H111).   RATING SENSITIVITIES - CIL, EWL, HL, TL  The National Ratings of these four leasing companies would be sensitive to a  material deterioration in asset quality, leading to an erosion of capital  position.  CIL, EWL, HL and TL's ratings would also be downgraded if their access to  liquidity was constrained, either for bond issuance or bank credit lines.   Potential for rating upgrade is limited for CIL, TL and HL, as the prevailing  fragile operating environment still weighs, albeit less than in 2011, on their  asset quality and liquidity.   EWL's ratings could be upgraded if its asset quality ratios were maintained at  satisfactory levels, increasing lending volumes were accompanied by sufficient  capital injections and Tunisia's fragile liquidity environment continued to be  alleviated by the company's well-managed funding.  RATING DRIVERS - SUBORDINATED DEBT (TL, ATL, CIL, AL)   TL, ATL, CIL and AL's rated subordinated debt issues are Lower Tier 2 issues,  which are rated three notches below their respective National Long-term Ratings, given weak recovery prospects an investor could expect on investments in these  subordinated debts in the event of default.  The rating actions are as follows:   ML National Long-term Rating: affirmed at'BBB(tun)'; Outlook Negative  National Short-term Rating: affirmed at 'F3(tun)'  Arab International Lease National Long-term Rating: affirmed at 'A+(tun)'; Outlook Stable National Short-term Rating: affirmed at 'F1(tun)' National senior unsecured debt rating: affirmed at 'A+(tun)'  Arab Tunisian Lease National Long-term Rating: affirmed at 'BBB(tun)'; Outlook Stable National Short-term Rating: affirmed at 'F3(tun)' National senior unsecured debt rating: affirmed at 'BBB(tun)' National subordinated debt rating: affirmed at 'BB(tun)'  Attijari Leasing   National Long-term Rating: affirmed at 'BB+(tun)'; Outlook Stable National Short-term Rating: affirmed at 'B(tun)' National senior unsecured debt rating: affirmed at 'BB+(tun)' National subordinated debt rating: affirmed at 'B+(tun)'  Tunisie Leasing National Long-term Rating: affirmed at 'BBB+(tun)'; Outlook Stable National Short-term Rating: affirmed at 'F2(tun)' National senior unsecured debt rating: affirmed at 'BBB+(tun)' National subordinated debt rating: affirmed at 'BB+(tun)'  Compagnie Internationale de Leasing National Long-term Rating: affirmed at 'BBB-(tun)'; Outlook Stable National Short-term Rating: affirmed at 'F3(tun)' National senior unsecured debt rating: affirmed at 'BBB-(tun)' National subordinated debt rating: affirmed at 'BB-(tun)'  El Wifack Leasing  National Long-term Rating: affirmed at 'BB+(tun)'; Outlook Stable National Short-term Rating: affirmed at 'B(tun)' National senior unsecured debt rating: affirmed at 'BB+(tun)'  Hannibal Lease National Long-term Rating: affirmed at 'BB-(tun)'; Outlook Stable National Short-term Rating: affirmed at 'B(tun)' National senior unsecured debt rating: affirmed at 'BB-(tun)'   (Caryn Trokie, New York Ratings Unit)  ((Caryn.Trokie@thomsonreuters.com; 646-223-6318; Reuters Messaging: rm://caryn.trokie.reuters.com@reuters.net))  Keywords: