Moody’s Maintains Egyptian Banks on Review for Downgrade

Moody’s Investors Service is maintaining on review for downgrade the deposit ratings of the following five Egyptian banks:

  1. National Bank of Egypt.
  2. Banque Misr.
  3. Banque Du Caire.
  4. Commercial International Bank (Egypt).
  5. Bank of Alexandria.

The maintenance of the review reflects Moody’s on-going evaluation of the impact of weak operating conditions on the banks’ asset quality and capitalisation metrics.

Moody’s review of the banks’ ratings will continue to focus on:

  • Egypt’s sovereign credit profile, given the banks’ high exposures to Egyptian government securities.
  • The weak operating/macroeconomic environment, which will exert additional pressure on banks’ asset quality, profitability and liquidity metrics.

The banks’ ratings could be downgraded following operating environment weakness, which would exacerbate existing weaknesses in their asset quality and the credit-risk profile of the sovereign; or a significant weakening in the banks’ liquidity or solvency positions.

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