Arab African International Bank – Outlook Lowered to Negative Following Similar Sovereign Action

EG003 23PBK 00-01 2 3 March 2 0 2 3

Arab African International Bank – Outlook Lowered to Negative Following Similar Sovereign Action

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has lowered the Outlook on the Long-Term Foreign Currency Rating (LT FCR) and Bank Standalone Rating (BSR) of Arab African International Bank (AAIB) to Negative from Stable . The change in the outlook follows a recent similar rating action on Egypt’s sovereign outlook . Although the level of Egyptian gove rnment securities held by AAIB is lower as a proportion of capital than at most other Egyptia n banks, it remains significant – as does exposure to state-owned enterprises. Given this factor together with the Bank’s ownership, w e therefore believe there to be a close linkage to the ratings of the s overeign. At the same time, CI Ratings has affirmed AAIB’s LT FCR and Short-Term…