National Bank of Egypt - Ratings Adjusted Following Lowering of Egypt Sovereign Rating

Overview

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 National Bank of Egypt (NBE) 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' (from '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 reflects CI's view that downside risks for the banking system have increased and this is likely to now pressure the Bank's credit profile due to ongoing risks to macroeconomic stability.  The Outlook on both ratings has been revised to Stable from Negative in line with the sovereign.

Attachments

• Rating Announcement (CRA)
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