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HSBC downgrades Lebanon’s Bank Audi to neutral

HSBC has downgraded its rating on the stock of Lebanese lender, Bank Audi to 'Neutral' from Overweight,' but maintained its 'Overweight' rating on the stock of BLOM Bank, The Daily Star has reported. HSBC also maintained its target price for BLOM Bank's shares at $10.1 and reduced its target price for Bank Audi's shares to $6.5 from $8.10. It noted that both banks had identical capital adequacy ratios of 13% in 2008, but added that BLOM had generated better profitability and paid lower dividends than Audi, therefore conserving its capital position.