Fitch Ratings on Sept. 13 downgraded the long- and short-term issuer default ratings of Lebanon-based Bank Audi SAL and Byblos Bank SAL to CCC/C from B-/B, following a similar action on the sovereign.
The rating agency also downgraded the banks' viability ratings to "ccc" from "b-," and affirmed their 5 support ratings and No Floor support rating floors.
Fitch said the banks' ratings are constrained by Lebanon's rating due to the difficult operating environment in the country and both lenders' substantial exposures to the central bank. The country's central bank and sovereign exposures also partially reflect the lack of domestic lending opportunities amid weak economic growth.
