S&P cuts Egyptian banks

Standard & Poor's said it lowered its long- and short-term counterparty credit ratings on the National Bank of Egypt, Banque Misr and Commercial International Bank (Egypt) SAE to B-/C from B/B.

The outlooks are negative.

S&P said the unsolicited public information Bpi rating on National Societe Generale Bank SAE is not affected because, typically, the agency does not use modifiers, outlooks, or CreditWatch placements for pi ratings.

The rating actions on NBE, BM and CIB follow the lowering of the long-term ratings on the Arab Republic of Egypt.

In S&P's opinion, political and social tensions in Egypt have escalated and are likely to remain elevated over the medium term. The agency said the increased polarization between political forces is likely to weaken the sovereign's ability to deliver sustainable public finances, promote balance growth and respond to further economic or political shocks.

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