...Ratings Capped by Sovereign: Bank Audi S.A.L.'s ratings are capped by that of Lebanon (B-/Stable) and the bank's Stable Outlook mirrors that of the sovereign as a result. This is due to the bank's substantial exposure to the sovereign and the central bank (about 40% of the balance sheet together) and the difficult operating environment. Lebanon's economic growth outlook remains modest. Strong Franchise: Audi is the leading bank in Lebanon, with a domestic market share of just over 10%. Audi's international operations, in particular in Turkey, are a growing and significant part of the bank's operations, but Lebanon still represents over 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. The Turkish subsidiary was only established in 2012, but already represents over...
