Fitch Ratings affirmed at 'B-' Byblos Bank's long-term Issuer Default Ratings (IDRs) and maintained its 'stable' outlook on the ratings. It also kept the Bank's Viability Ratings at 'b-' and the Support Rating at '5'. It indicated that the Bank's long-term IDRs are driven by its intrinsic strengths and that the 'stable' outlook mirrors the outlook on the sovereign. It said that the ratings are capped by the sovereign's creditworthiness due to the Bank's substantial holdings of government debt and of Certificates of Deposits issued by Banque du Liban (BdL), as well as by the prevailing operating environment. 

The agency indicated that Byblos Bank is the third largest bank in the country, with assets accounting for about 10% of the banking sector's aggregate assets. It said that the Bank has a strong domestic franchise that supports revenue generation and deposit growth. It added that the Bank's experienced management has demonstrated its ability to implement well-articulated and consistent strategic objectives. It pointed out that the Bank's balance sheet is well-balanced between liquid and non-liquid assets. But it considered that the Bank's exposure to the sovereign and BdL as unavoidable amid the decline in domestic lending opportunities. 

Further, Fitch said that Byblos Bank has prudent underwriting standards for loans, with acceptable diversification by economic sector and single obligor. It indicated that Byblos Bank's loan book is resilient, with low problem loan generation and a stable non-performing loans (NPLs) ratio that compares well with similarly-rated peers. 

In addition, it pointed out that Byblos Bank's balance sheet is very liquid, with a loans-to-deposits ratio of about 30%. It added that the Bank's placements at BdL and its holdings of sovereign securities underpin its liquidity flexibility. It noted that the Bank's deposits have been historically stable and well-diversified, which mitigates liquidity maturity mismatches.