Fitch Ratings Assigns UBCI 'CCC+' Long-Term IDR and 'ccc+' Viability Rating
Fitch Ratings has announced that it has assigned Union Bancaire pour le Commerce et l'Industrie (UBCI) a Long-Term Local-and-Foreign Currency Issuer Default Ratings (IDR) of 'CCC+', as well as a Viability Rating of 'ccc+'. Additionally, Fitch has assigned UBCI national ratings of 'AA-(tun)' for the long term and 'F1+(tun)' for the short term, with a stable outlook for the long-term national rating.
Key Rating Drivers
The ratings assigned to UBCI reflect the solidity of its financial position and its ability to adapt in a challenging national economic and political context. Although the operating environment remains complex, UBCI maintains reasonable asset quality indicators, modest but stable profitability, and a solid funding profile.
- Asset Quality: With a non-performing loan ratio of 6.4% as of 2023, well below the sector average of 13.6%, UBCI is favorably positioned among its peers.
- Profitability and Capitalization: The bank remains profitable with capitalization levels in line with regulatory requirements, despite pressures on profitability due to the economic environment.
- Solvency and Liquidity: A loan-to-deposit ratio of 91% and a liquidity coverage ratio (LCR) of 219% demonstrate a solid funding base and prudent liquidity management.
The rating agency's analysts have also highlighted UBCI's rigorous risk management practices and strategic focus on less risky segments, such as individual customers and high-quality enterprises.
Outlook
UBCI remains committed to strengthening its positioning in the Tunisian market by capitalizing on its strengths and continuing its efforts to adapt to the evolving economic and financial landscape.
