Fitch Maintains Morocco’s CIH Rating At ‘BB’Stable

Rabat – Morocco’s Credit Immobilier et Hotelier (CIH) outlook is stable, supported by the bank’s strong status as a real-estate lender.

CIH’s national rating is similar to that of other Moroccan banks. However, the rating remains below the rating of French bank subsidiaries operating in Morocco as they benefit from the support of a network of international shareholders, according to a recent Fitch report.

Despite a limited 4-5% market share, having Morocco’s state-owned Caisse de Depot et de Gestion (CDG) as a major stakeholder at 67.9% significantly improves the bank’s growth prospects, argues the American rating agency.

CIH’s successful transition away from real-estate-based loans also underpins the positive assessment from Fitch. The Moroccan bank reached a share of non-real-estate loans of 53% in mid-2021, up from 31% at the end of 2016, explains Fitch.

The change in CIH’s business model towards a more diversified lending strategy has put significant pressure on the bank’s capital, points out Fitch.

CIH’s investment in digital services and free banking for specific segments have contributed to a substantial increase in the bank’s customer base, increasing deposits.

The stable outlook is further supported by the easing COVID-induced pressure on the bank’s environment, reckons the report.

With a total asset volume of $600 million, Credit Immobilier et Hotelier is Morocco’s seventh-largest bank.

Fitch released earlier this week its rating report on Morocco’s largest bank, Attijariwafa Bank. The report specifies that the bank’s growth prospects will remain positive throughout 2022 due to a large 25% market share and quality management.

Morocco’s banking sector has been garnering a lot of attention in recent months on the backdrop of a decade-long African expansion strategy.

With two Moroccan banks already on the list of the 10 largest banks on the African continent, African subsidiaries contributed with a 3.6% growth in the third quarter of 2021 for Morocco’s BCP Banking group, controlling a network of 18 subsidiaries across Africa, according to a Financial Times report.