Ratings on Tunisia unaffected by election outcome, says S&P
Source: Standard & Poor's Ratings Services , Author: Posted by BI-ME staff
Posted: Tue November 1, 2011 4:16 pm

INTERNATIONAL. Standard & Poor's Ratings Services said today that the outcome of the election for the constitutional assembly in the Republic of Tunisia has no immediate effect on the sovereign rating on Tunisia, and on the rating on the Central Bank of Tunisia (both BBB-/Negative/A-3).

We note that these elections, which were held on October 23, 2011, with more than 100 political parties, were the first since former president Ben Ali fled the country in January during the Jasmine revolution.

We also note that voter participation was extremely high, at about 90%. We understand that the constitutional assembly will nominate a president, designate an interim government, and draft a new constitution within a year. It is our understanding that elections for the institutions newly created by the constitution would not take place before end-2012.
 
Election results indicate that the Islamist party, Ennhada, garnered 41.5% of votes and 90 seats. The secularist Congress for the Republic won 13.8% of the vote and 30 seats, Ettakatol won 21 seats, the Popular List 19, and the Progressive Democratic Party 17 seats.

The remaining 30 seats went to several smaller parties or independent lists. Ennhada has announced that coalition talks are underway and that it would form a government within 10 days.
 
The composition of the new government is not, in itself, a rating factor for Standard & Poor's. Our focus is on whether the new government will support the economic recovery by taking medium-term policy measures and pursuing structural reforms while maintaining macroeconomic stability.

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: May 6, 2016
INTERNATIONAL. "The rift between President Erdogan and Prime Minister Davutoglu is actually reflective of Erdogan's ambitions to consolidate his power not only over his party but also over the country as a whole."
date:Posted: May 5, 2016
UAE. There are more negative than positive factors likely to impact oil prices in the short term. With current oil net-long speculative positions at an elevated level, a slight change in traders' outlook would lead to a significant selloff.
date:Posted: May 4, 2016
INTERNATIONAL. The climate has rarely been so favourable to a resolution of the conflict. The chaos that is sweeping the Middle East has been a game-changer in relation to Israel and the Arab countries.
INTERNATIONAL. "The rift between President Erdogan and Prime Minister Davutoglu is actually reflective of Erdogan's ambitions to consolidate his power not only over his party but also over the country as a whole."
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