Bank of Alexandria – Ratings Adjusted Following Lowering of Egypt Sovereign Rating

Ref : EG 0072 3PBK00-02 12 September 202 3

Bank of Alexandria – Ratings Adjusted Following Lowering of Egypt Sovereign Rating

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has lowered the Long-Term Foreign Currency Rating (LT FCR) and Bank Standalone Rating (BSR) of Bank of Alexandria (Alexbank) to ‘B ’ and ‘b ’, respectively , from ‘B+’ and ‘b+’ . The change in the LT FCR and BSR follows a recent lowering of Egypt’s Sovereign LT FCR to ‘B’ on 1 September 2023 . The sovereign downgrade reflects the increase in Egypt’s external financing risks due to the country’s high external financing needs and risks to the sufficiency and timeliness of financing inflows. The change in the LT FCR and BSR reflects CI’s view that downside risks for the banking system have increased and this is likely to now pressure Alexbank’s credit profile due to ongoing risks to…