Capital Intelligence (CI), the international credit rating agency, today announced that it has affirmed the ratings of Banque Marocaine pour le Commerce et l'Industrie, based in Casablanca, Morocco. The Long-term Foreign Currency rating is affirmed at 'BBB-', the Short-term Foreign Currency rating at 'A3' with a 'Stable' Outlook. At the same time, CI affirmed the Bank's Financial Strength rating at 'BBB-' and the Outlook is changed to 'Positive' from 'Stable', reflecting the continued improvement in the financial profile.
Banque Marocaine pour le Commerce et l'Industrie (BMCI) displays a sound financial profile, supported by a good business franchise in the Moroccan banking sector, particularly connected to the corporate sector and an increasing presence in the retail sector. The Bank receives noted operational and executive management support from its majority owner, BNP-Paribas Group. Asset quality is considered acceptable overall, reflecting a manageable level of non-performing loans (NPLs) and very good provisioning coverage. The challenge for BMCI will be to maintain its loan asset quality in the face of a slightly weaker economic environment in 2011.
While Morocco has not avoided the unrest taking place in neighbouring North African and Middle East countries, the country is in a position of relative strength, and risks to the monarchy appear currently minimal.
BMCI's capital position is sound and allows for moderate balance sheet growth going forward. The liquidity profile is adequate, supported more recently by the slight decline in lending and moderate increase in customer deposits. Net profit continued to improve in 2010.
-Ends-
From 1964 to 1973, BMCI operated as Banque Nationale pour le Commerce et l'Industrie - Afrique, which was part of what is now the BNP-Paribas Group (BNPP). Incorporated with local capital in 1973, the Bank's principal shareholder remains BNPP, which holds a 66.74% stake. BNPP exercises control, is strongly represented on the board, and has seconded a number of BNPP expatriates to senior management positions. At end-December 2010, total assets on a consolidated basis amounted to MAD66,302mn (USD8,105mn).
CONTACT
Primary Analyst
Darren Stubing
Senior Adviser
Tel: +357 2534 2300
Email: darren.stubing@ciratings.com
Secondary Analyst
Thomas Kenzik
Senior Credit Analyst
Email: tom.kenzik@ciratings.com
Rating Committee Chairman
Morris Helal
Senior Credit Analyst
The ratings have been initiated by Capital Intelligence. The issuer did not participate in the rating process. The information source used to prepare the credit ratings is public information. Capital Intelligence had have access to the accounts but no other relevant internal documents for the purpose of the rating, but considers the quality of information available on the issuer to be satisfactory for the purposes of assigning and maintaining credit ratings. Capital Intelligence does not audit or independently verify information received during the rating process.
The rating has been disclosed to the rated entity and released with no amendment following that disclosure. Ratings on the issuer were first released in March 1996. The ratings were last updated in March 2010.
The principal methodology used in determining the ratings is Bank Rating Methodology. The methodology and the meaning of each rating category and definition of default, as well as information on the attributes and limitations of CI's ratings, can be found at www.ciratings.com.
© Press Release 2011
