S&P cuts 2 Egypt banks

Standard & Poor's said it lowered the long-term ratings on National Bank of Egypt and Commercial International Bank (Egypt) SAE to BB from BB+ and placed the BB/B long- and short-term ratings on CreditWatch with negative implications.

The agency also said it affirmed the unsolicited BBpi (public information) rating on National Societe Generale Bank SAE.

The actions follow a similar action on the Republic of Egypt, reflecting that the risks from the ongoing political instability and violent unrest will hamper Egypt's economic growth.

These events are likely to have a negative effect on the financial profiles of the banks, particularly their asset quality and profitability, S&P said.

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