Banque du Caire – Ratings Affirmed

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has affirmed the Long-Term Foreign Currency Rating (LT FCR) and Short-Term Foreign Currency Rating (ST FCR) of Banque du Caire (BdC or the Bank) at ‘B’. The Outlook for the LT FCR remains Stable. At the same time, CI Ratings has affirmed BdC’s Bank Standalone Rating (BSR) of ‘b’ with a Stable Outlook, Core Financial Strength (CFS) rating of ‘bb-’ and Extraordinary Support Level (ESL) of Moderate.

Rating Drivers

Given ownership, BdC’s LT FCR is closely correlated with the sovereign’s creditworthiness. Any improvement or deterioration in Egypt’s LT FCR and/or outlook will therefore have a corresponding effect on BdC’s ratings and outlook. The ESL of Moderate reflects the likelihood of official extraordinary support given BdC’s effective government ownership. Such an ESL would normally allow for a one-notch uplift for the Bank’s LT FCR. This is, however, precluded, as the rating is…