Moody’s has recently affirmed the ratings and assessments of five Egyptian banks. These include the Caa1 long-term deposit ratings for National Bank of Egypt SAE (NBE), Banque Misr SAE (BM), Banque du Caire SAE (BdC), and Commercial International Bank (Egypt) SAE (CIB). Additionally, the B3 long-term deposit rating of Bank of Alexandria SAE (BoA) was also affirmed. Notably, Moody’s has revised the outlook on the banks’ long-term deposit ratings from negative to positive.
The recent rating action by Moody’s is a result of their decision to affirm Egypt’s Caa1 rating while changing the outlook from negative to positive. This shift in outlook is attributed to significant factors, including a substantial foreign direct investment contribution from the United Arab Emirates and a notable change in economic policy. The latter involves a substantial currency devaluation and an increase in interest rates, which, if sustained, will support Egypt in maintaining an expanded IMF programme.
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