(The following statement was released by the rating agency) Dec 21 - Fitch Ratings has downgraded Modern Leasing's (ML) National Long-term Rating to 'BBB(tun)' from 'A-(tun)'. The Outlook is Negative. At the same time, the agency has affirmed the National Ratings of Arab Tunisian Bank, Arab International Lease, Arab Tunisian Lease, Attijari Leasing, Tunisie Leasing, Compagnie Internationale de Leasing, El Wifack Leasing, Hannibal Lease, Tunisie Factoring, and Union de Factoring. A full list of rating actions is at the end of this comment. RATING ACTION RATIONALE ML's National Ratings have been downgraded following the downgrade of Tunisia's Issuer Default Rating (IDR; see "Fitch Downgrades Tunisia to 'BB+', Outlook Negative", dated 12 December 2012 atwww.fitchratings.com ), and indirectly a weakening of the sovereign creditworthiness relative to strong credits in the country. The Negative Outlook on ML's National Long-term Rating reflects that on Tunisia's Long-term IDRs. The affirmation of the 10 other entities' National Ratings reflects the absence of direct impact from the downgrade of Tunisia's sovereign risk on their respective ratings. Nonetheless, Fitch will shortly conduct a full review of Tunisia's leasing and factoring companies' ratings, based on their respective rating drivers. RATING DRIVERS AND SENSITIVITIES - MODERN LEASING 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 weak creditworthiness on a standalone basis. Modern Leasing is (directly and indirectly) 57%-owned by BH, which in turn is 57%-controlled by the Tunisian state. 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 its ratings. Conversely, an upgrade of ML's ratings could be triggered by an increase in BH's control in or deeper integration with BH, or an upgrade of Tunisia's Long-term local currency IDR. The rating actions are as follows: ML National Long-term Rating: downgraded to 'BBB(tun)' from 'A-(tun)'; Outlook Negative National Short-term Rating: downgraded to 'F3(tun)' from 'F2(tun)' Arab Tunisian Bank National Long-term Rating: affirmed at 'AA+(tun)'; Outlook Stable National Short-term Rating: affirmed at 'F1+(tun)' National Senior unsecured debt rating: affirmed at 'AA+(tun)' Long-Term Foreign Currency Issuer Default Rating: 'BBB-'; Outlook Negative; unaffected Short-Term Foreign Currency Issuer Default Rating: 'F3'; unaffected Long-Term Local Currency Issuer Default Rating: 'BBB'; Outlook Negative; unaffected Short-Term Local Currency Issuer Default Rating: 'F3'; unaffected Viability Rating: 'b'; unaffected Support Rating: '2'; unaffected 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)' Tunisie Factoring National Long-term Rating: affirmed at 'BBB(tun)'; Outlook Stable National Short-term Rating: unaffected; 'F3(tun)' Union de Factoring 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:
TEXT - Fitch cuts Modern Leasing rating
December 21, 2012




















