The sector outlook for Tunisia's banks in 2019 is negative, reflecting the prospect of continued tight liquidity, rising funding costs and weak economic activity, Fitch Ratings says in an Outlook Report on banking in francophone African countries.

Fitch Ratings has assigned Tunisia's forthcoming euro-denominated notes an expected rating of 'B+(EXP)'.

Tunisia's central bank left its key interest rate steady at 6.75 percent, noting the persistence of inflationary pressures despite a slight decline in July and underscoring the need to closely monitor financial and monetary data.

Moody's Investors Service has today downgraded the long-term issuer rating of the Government of Tunisia to B2 from B1. The outlook was changed to stable from negative.