Moody's places a review rating of 5 Egyptian banks

Moody's Investors Service (Moody's) has placed the B3 long-term local and foreign currency deposit ratings for review on all Moody's rated banks in Egypt.

The banks' long-term Counterparty Risk Ratings (CRRs) and Baseline Credit Assessments (BCAs) were also placed on review for downgrade.

The banks are: the National Bank of Egypt SAE, Banque Misr, Banque Du Caire and Commercial International Bank. As well as the B2 long-term local and foreign currency deposit ratings of Bank of Alexandria.

This follows Moody's decision to place the Government of Egypt's B3 long-term issuer ratings on review for downgrade that was announced last week.

“The review period will focus on the government's ability to finalize the targeted $2 billion in asset sales necessary to meet the IMF program's financing targets for fiscal 2023 (ending June) and demonstrate the viability of the program's external funding strategy that relies significantly on asset sales,” the statement issued by Moody’s last week read.