Standard & Poor's upgrades the credit rating of four Egyptian banks
International credit rating agency Standard & Poor's (S&P's) upgraded its ratings on four Egyptian banks on Monday (November 18th).International credit rating agency Standard & Poor's (S&P's) upgraded its ratings on four Egyptian banks on Monday (November 18th).
The National Bank of Egypt, Banque Misr, National Societe Generale Bank and Commercial International Bank went from CCC+ to B-, with a stable outlook,
Egypt State Information Service
This rating change came days after the agency raised Egypt's national sovereign credit rating from CCC+/C to B-/B with a stable rating outlook.
"This improvement of Egypt's creditworthiness alleviates some of the pressure we see on the four Egyptian banks we rate, as they hold a high amount of government debt compared with their equity base and earnings capacity," said S&P's.
The new rating should make it easier and cheaper for these banks to borrow money, which is expected to reduce the interest rates they apply on loans.
This announcement ends
of dropping credit ratings since the revolution started in Egypt in January 2011, ending the three-decade-old regime of Hosni Mubarak.