TEXT-S&P publishes BICRA report on Tunisia

(The following statement was released by the rating agency)

Sept 24 - Standard & Poor's Ratings Services has reviewed the banking sector of the Republic of Tunisia (BB/Stable/B) under its updated Banking Industry Country Risk Assessment (BICRA) methodology. We rank Tunisia in BICRA group '8', along with countries such as Lebanon, Egypt, Georgia, Nigeria, and Kazakhstan. For the full report, see "Banking Industry Country Risk Assessment: Tunisia," published today on RatingsDirect on the Global Credit Portal.

The BICRA comprises two main areas of analysis--economic risk and industry risk--where Tunisia scores '8' in each.

Our economic risk score of '8' reflects our opinion that Tunisia faces "very high risk" in "economic resilience," "intermediate risk" in "economic imbalances," and "extremely high risk" in "credit risk in the economy," as our criteria define these terms.

The industry risk score for Tunisia is '8'. This reflects our opinion that the country faces "very high risk" in its "institutional framework" and "systemwide funding" and "high risk" in its "competitive dynamics," as our criteria define these terms.

We classify the Tunisian government as "supportive" of its domestic banks, as demonstrated through its good track record of supporting systemically important banks when needed. We note, however, that the government has limited financial flexibility and capacity to provide extraordinary support to banks in the event of a systemic crisis.

RELATED RESEARCH AND CRITERIA

-- Banking Industry Country Risk Assessment Update: September 2012, Aug. 31, 2012

-- Understanding S&P's Recent Rating Actions On Tunisia And Tunisian Banks, July 11, 2012

-- BICRA On Tunisia Maintained At Group '8', June 28, 2012

-- Tunisia (Republic of), June 20, 2012

-- Issuer Credit Profiles For Rated Banks In The Arab Mediterranean Region, June 13, 2012

-- Tunisia Foreign And Local Currency Ratings Lowered To 'BB/B' On Weaker Economic Indicators; Outlook Stable, May 23, 2012

-- Banking Industry Country Risk Assessment Methodology And Assumptions, Nov. 9, 2011

-- Standard & Poor's BICRAs Highlight The Shifting Balance In Global Banking, Nov. 9, 2011

-- Sovereign Government Rating Methodology And Assumptions, June 30, 2011