BEIRUT: Fitch Ratings has revised the outlooks on Bank Audi and Byblos Bank to negative from stable and affirmed the respective banks' LongTerm Issuer Default Ratings (IDRs) at 'B'.
This comes in the wake of Moody's reassessment of Lebanon after it downgraded its credit rating to Caa1, reflecting a higher risk that the government may implement a debt rescheduling plan "that may constitute a default."
Following the downgrading of a country's credit rating, it is normal procedure to then do the same to a number of established banks.
The LongTerm IDRs of Audi and Byblos are driven by their intrinsic strength as expressed by their Viability Ratings (VRs), Fitch said.
Fitch noted both Audi and Byblos' respective domestic market share of just over 10% of assets, international diversification, liquid balancesheet, resilient deposit base and competent management.
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