Moody’s changes rating for 5 Egyptian banks

Moody’s changes rating for 5 Egyptian banks

Credit rating agency Moody’s announced on Tuesday that it has changed the ratings and estimates of five internationally ranked Egyptian banks.

The agency said that this includes the Caa1 long-term deposit ratings of the National Bank of Egypt (NBE), Banque Misr (BM), Banque du Caire and the Commercial International Bank (CIB), and the B3 long-term deposit ratings of the Bank of Alexandria.

As part of the same rating procedure, Moody’s changed the outlook on several banks’ long-term deposit ratings from negative to positive.

According to the agency, the rating procedures come in the wake of its decision to confirm Egypt’s Caa1 rating and change its future outlook to positive from negative.

The positive change in outlook reflects the very large contribution to foreign direct investment by the UAE, and the notable change in economic policy with the significant devaluation of the currency and an increase in interest rates, which, if maintained, will help Egypt sustain the size of its economy.

Moody’s said that the negative risks that prompted it to change its outlook to negative in January “have decreased significantly,” as the “very large” foreign direct investment contribution provided by the UAE works to significantly enhance the economy’s foreign exchange reserves to cover the financing