Fitch Affirms Wifak International Bank’s National Long-Term Rating at ‘BB-(tun)’; Negative Outlook

Fitch Ratings (Fitch) has affirmed Wifak International Bank’s (Wifak) National Long-Term Rating at ‘BB-(tun)’ with a Negative Outlook and National Short-Term Rating at 'B(tun)'. Wifak, which was previously a leasing company, completed its transformation into a bank in the first half of 2017 and now operates as the smallest of three Islamic banks in Tunisia.

Ratings and Outlook Rationale

The ratings reflect the bank’s small size and less than 1% of total banking sector assets in domestic market share. Although Wifak is still not profitable since it is still in the early stages of its transformation, the bank’s business model is evolving and growth is projected over the next five years.

Real gross domestic product...