QNB S.A.E. – Ratings and Outlook 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 QNB S.A.E. (or the Bank) at ‘B’ and ‘B’, respectively. At the same time, CI Ratings has affirmed the Bank’s Bank Standalone Rating (BSR) of ‘b’, Core Financial Strength (CFS) rating of ‘bb+’ and Extraordinary Support Level (ESL) of High. The Outlook on both the LT FCR and BSR remains Stable.

The Bank’s BSR is based on a CFS rating of ‘bb+’ and an Operating Environment Risk Anchor (OPERA) of ‘b’ (indicating high risk), and incorporates the Bank’s capacity to withstand sovereign-induced stress. Egypt’s OPERA reflects the challenging economic situation given very high inflation and large socio-economic vulnerabilities. These challenges in part stem from significantly higher geopolitical risks, which in turn have led to large governmental external liquidity risks….