Moody's has reduced the long-term deposit ratings of 5 Egyptian banks by one level, while maintaining a stable outlook.

 

This rating adjustment marks the second one this year, aligning with the recent lowering of Egypt's sovereign credit rating.

 

As per Moody's report, Banque Misr, National Bank of Egypt (NBE), Banque du Caire, Commercial International Bank (CIB), and Bank of Alexandria have all seen a decrease in their deposit ratings, shifting from B3 to Caa1. Bank of Alexandria's rating also dropped from B2 to B3.

 

In early October, Moody's, the credit rating agency, downgraded Egypt's credit rating from B3 to CAA1, with a stable outlook.

 

Moody's rationale for this downgrade is rooted in the declining capacity of the Egyptian government to handle its debt, ongoing shortages of foreign currency, and the increasing pressure from external debt service payments over the next two years. This comes in the context of a narrowing scope for policy adjustments to rebalance the economy without heightening social risks.