2023-10-11 11:03:48
Moody’s credit rating agency lowered the rating of 5 Egyptian banks this morning: National Bank of Egypt, Egypt, Cairo, Commercial International, and Bank of Alexandria, according to the report published by the agency.
The National Bank of Egypt, Cairo and Commercial International Bank were downgraded from B3 to Caa1, while the Bank of Alexandria was downgraded from B2 to B3, with a stable future outlook.
The agency attributed the downgrade of banks’ credit ratings to their high holding of government bonds, in addition to weak macroeconomic performance.
On Tuesday, October 3, Morgan Stanley lowered Egypt’s sovereign credit rating, indicating that there are risk factors surrounding the current situation, in conjunction with the incompleteness of the economic reform program of the International Monetary Fund.
Egypt’s credit rating
It is worth noting that Moody’s lowered Egypt’s credit rating by one notch from B3 to Caa1 on October 6, changing the future outlook from negative to stable. The agency attributed this reduction to the deterioration of Egypt’s ability to repay its debts and the continued shortage of foreign currency. It also modified the future outlook to stable.
Between last February and May, Moody’s and Fitch announced that Egypt’s credit rating was lowered by one notch to “B2” and “B” respectively, and the three institutions also agreed to change the outlook for the local economy from “stable” to “negative.”
The main headquarters of Fitch, Moody’s, and Standard & Poor’s are located in America, and they measure the creditworthiness of countries and institutions to determine their ability to obtain loans or financing regarding investment or various economic conditions.
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