...Ratings Capped by Sovereign: Bank Audi S.A.L.'s ratings are capped by that of Lebanon (B/Negative) and as a result the bank's Negative Outlook mirrors that of the sovereign. This is due to the bank's substantial exposure to the sovereign and the central bank (about a third of the balance sheet together) and the difficult operating environment. Lebanon suffers from political gridlock and economic growth is likely to remain muted until conditions in neighbouring Syria improve. Strong Franchise: Audi is the leading bank in Lebanon, with a domestic market share of about 25%. Audi's international operations, in particular in Turkey, are a growing and significant part of the bank's operations but Lebanon still represents half of group assets. Ambitious Turkish Expansion: Audi's expansion in Turkey is positive for diversification and appears to have been managed well, but Fitch Ratings will closely monitor the development of the loan book given the short history and fast growth in recent years....
