QNB Alahli – Outlook Lowered to Negative Following Similar Sovereign Action

Ref: EG02623PBK00-01 23 March 2023

QNB Alahli – 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 QNB Alahli (QNB AA) 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 government securities held by QNB AA is lower as a multiple of capital than at most other Egyptian banks, it remains significant, as does the level of lending to state-owned enterprises. We therefore believe there to be a close linkage to the ratings of the s overeign. The Bank’s LT FCR and Short -Term Foreign Currency Rating ( ST FCR ) have been affirmed at ‘B+’ and ‘B’, respectively. CI Ratings has also affirmed QNB AA’s BSR of ‘b+’,…