Bank Audi

Financial Mirror (Cyprus) - - FRONT PAGE -

Bank Audi’s b3 BCA and B3 long-term de­posit rat­ings re­flect its lead­ing do­mes­tic mar­ket po­si­tion and im­prov­ing ge­o­graph­i­cal di­ver­si­fi­ca­tion, with 41% of as­sets out­side Le­banon as of end-June 2017 (24% of as­sets are in Turkey, 11% in the rest of the Mid­dle-East and Africa re­gion and 6% in Europe) as well as its ad­e­quate liq­uid­ity pro­file and sta­ble fund­ing struc­ture. Moody’s con­sid­ers the bank’s cap­i­tal­i­sa­tion as mod­est, although it is im­prov­ing, with a share­holder’s eq­uity (ex­clud­ing mi­nor­ity in­ter­est)-to-to­tal as­sets of 8.2% as of end-June 2017, given the chal­leng­ing do­mes­tic op­er­at­ing en­vi­ron­ment to­gether with risks re­lat­ing to the bank’s rapid ex­pan­sion in Turkey where the op­er­at­ing en­vi­ron­ment for banks has weak­ened, although it re­mains more favourable than the Le­banese op­er­at­ing en­vi­ron­ment.

Bank Audi’s long-term and LB-2 short-term Le­banese NSRs are mainly de­rived from the bank’s global lo­cal-cur­rency de­posit rat­ings and re­flect its strong rel­a­tive cred­it­wor­thi­ness within the Le­banese credit en­vi­ron­ment driven by its dom­i­nant do­mes­tic mar­ket po­si­tion, com­par­a­tively lower sov­er­eign ex­po­sure com­pared to peers and higher ge­o­graph­i­cal di­ver­si­fi­ca­tion.

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