Moody's Investors Service downgraded the long-term global local currency (GLC) deposit ratings of three Egyptian banks, Beltone Financial said Thursday in its daily market report.
Ratings for the two other rated banks were confirmed, concluding the review for possible downgrade initiated on these ratings in July 2009.
Moody's downgraded the GLC deposit ratings of Commercial International Bank's (CIB) and National Bank of Egypt to Baa2/P-2 from Baa1/P-2, with a stable outlook. Banque du Caire's GLC deposit ratings were downgraded to Baa3/P-3 from Baa2/P-2, with a stable outlook.
Meanwhile, Bank of Alexandria's and Banque Misr's GLC deposit ratings were confirmed at Baa2/P-2, with a stable outlook.
All bank financial strength ratings (BFSRs) and foreign currency deposit ratings of the five rated Egyptian banks remain unchanged and are not affected by this rating action.
The downgrade of the three banks' local currency deposit ratings reflects Moody's view that Egypt's ability to provide support to its banking system, if needed, is more closely aligned with the government's own debt capacity.
© Daily News Egypt 2010
