Earlier this May, Fitch downgraded Egypt’s sovereign rating to “B” with a negative outlook. Three of the four banks, whose ratings it downgraded, are public banks exposed to the state. The Issuer Default Ratings (IDR) and Viability Ratings of these four Egyptian banks have been lowered from “B+” to “B” with a negative outlook. According to Fitch, these ratings are closely related to the recent downgrade of Egypt’s sovereign rating to “B” with a negative outlook in early May. As for the tight liquidity conditions for these Egyptian banks, they are explained by the recurrent capital shortages of Egyptian banking institutions.

Source: The North Africa Journal May 25, 2023 00:40 UTC