Fitch cuts National Bank of Egypt

Fitch Ratings said it downgraded National Bank of Egypt and its subsidiary National Bank of Egypt (UK) Ltd.'s long-term foreign currency issuer default ratings to BB from BB+ and placed them on Rating Watch negative.

S&P affirmed the banks' short-term issuer default ratings at B.

The downgrade reflects the downgrade of Egypt's ratings on Feb. 3, following the significant intensification of unrest at the start of what is likely to be a volatile transition to a new government and the increasingly negative consequences for the economy, public and external finances of the continuing disruption, Fitch said.

The Rating Watch reflects the view of the significant uncertainty surrounding the impact of the extended closure of banks and businesses on the banks' financial standing and the longer-term impact of the current instability on the Egyptian economy, Fitch added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.