Fitch Ratings revises outlook for 4 local banks to positive



Sun, 19 May 2024 - 12:31 GMT


Sun, 19 May 2024 - 12:31 GMT

Cairo – May 19, 2024: International ratings agency Fitch Ratings revised its long-term debt outlooks for four of Egypt’s major banks, signifying the agency’s growing confidence and the country’s improved macroeconomic stability.

Fitch Ratings upgraded its outlook for the National Bank of Egypt, Banque Misr, Banque du Caire, and the Commercial International Bank (CIB) to positive while maintaining their respective ratings at “B-”.

The ratings agency explained that the banks’ performance will “remain strong in the medium term supported by high interest rates, stronger business growth and greater macroeconomic stability”.

Egypt’s improved foreign currency liquidity, supported by the Ras El Hekma deal and International Monetary Fund’s (IMF) Extended Facility Fund, and greater exchange rate flexibility were main factors for the revision.

These will support greater macro stability in FY2024/2025 wrote Fitch, noting that “a stronger sovereign credit profile will be positive for banks' business, risk and financial profiles”.

Fitch Ratings upgraded Egypt’s sovereign outlook to positive earlier in May, citing declining near-term external financing risks attributed to the influx of foreign currency from the Ras El Hekma deal and IMF, the pound’s float, and interest rate hikes.

Fitch previously lowered the banks’ credit ratings from B to B- back in November 2023, following a downgrade of Egypt’s sovereign rating.

Back in March, Moody’s upgraded its credit rating outlook for five Egyptian banks to positive from negative, affirming its Caa1 long-term deposit rating.



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