Mubasher: Fitch Ratings has affirmed Tunisia’s short-term foreign- and local-currency IDRS at 'B' and country ceiling at 'BB-', with a stable outlook, according to a recent report.
The ratings agency said that external imbalances have worsened, with a wider current account deficit in Q1-17 leading to exchange rate pressures, adding that without fiscal consolidation to reduce foreign financing needs, it is expecting strains on external balances to continue.
Fitch also expects exports growth to be aided by higher GDP growth in Europe, and projected recovery in the tourism sector, adding that government proposals to introduce higher tariffs on some non-essential products will contribute to slowdown in import growth.
The report also indicated that Fitch forecasts structural current account deficit will remain a weakness of Tunisia's sovereign credit profile for foreseeable future.
