Fitch Revises CPSCL's Outlook to Stable; Affirms at 'AA-(tun)'
KEY RATING DRIVERS
The Outlook revision and ratings affirmation follows the recent revision on Tunisia's Outlook to Stable from Negative and affirmation of its ratings (see "Fitch Revises Tunisia's Outlook to Stable; Affirms IDR at 'BB-'", dated 27 March 2015 at www.fitchratings.com).
CPSCL's ratings are linked to those of the Tunisian sovereign (BB-/BB/Stable/B), reflecting CPSCL's status as a public establishment, with significant control by the state. The ratings factor in CPSCL's high strategic importance in providing funding to local authorities, but also Fitch's assessment of moderate probability of state support, if needed. Fitch uses its public sector entities rating criteria and applies a top-down approach to rate CPSCL. CPSCL's ratings reflect the sovereign creditworthiness on the National Rating Scale.
RATING SENSITIVITIES
Movements in Tunisia's Long-term local currency IDR would be reflected in CPSCL's National ratings. Furthermore, changes to CPSCL's strategic importance to the Tunisian state or negative changes in CPSCL's governance, leading to a dilution of state control, would trigger a downgrade.
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