Fitch Ratings has assigned
Key Rating Drivers
The subordinated notes are direct, unsecured and subordinated obligations of HL. Their rating is notched down twice from HL's National Long-Term Rating of 'B+(tun)' to reflect our expectation of poor recoveries. The notes are subordinate to HL's senior unsecured debt and qualify as Tier 2 capital in accordance with Tunisian prudential regulations. As the notes do not contain coupon deferral clauses, Fitch has not applied additional notches for non-performance risk.
RATING SENSITIVITIES
The rating on the subordinated debt is principally sensitive to changes in HL's National Long-Term Rating as well as in changes in Fitch's recovery expectations for the instruments.
Factors that could, individually or collectively, lead to positive rating action/upgrade:
Upside potential for HL's National Long-Term Rating is limited, given challenging operating conditions and it is therefore difficult for HL to improve its credit profile relative to other Tunisian companies.
Factors that could, individually or collectively, lead to negative rating action/downgrade:
HL's National Long-Term Rating is sensitive to further deterioration in
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
RATING ACTIONS
Entity / Debt
Rating
subordinated
Natl LT
B-(tun)
New Rating
Page
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