Tuesday 19/November/2024 – 10:12 AM
Agency raised Fitch Today, Tuesday, November 19, the International Credit Rating Company issued its rating for four local banks in Egypt from B- to B.
According to a statement issued by the agency, the list of four banks includes the National Bank of Egypt, the Bank of Egypt, the Cairo Bank, and the Commercial International Bank, Egypt branch.
Fitch attributed its decision to increasing liquidity in foreign currencies through the Ras El Hekma agreement, the International Monetary Fund package, and foreign investments and remittances, as bank performance will remain strong in the medium term, supported by high interest rates, strong business growth, and greater macroeconomic stability.
Egypt’s credit rating
Earlier, Fitch raised Egypt’s credit rating at the beginning of this November, for the first time since 2019, in a move that represents a new boost to the Egyptian economy.
Fitch Credit Rating Agency raised Egypt’s rating by one level from B- to B, with a stable outlook.
In its latest report, Fitch indicated a decrease in external risks, adjustment of policies, and strengthening of Egypt’s external financial conditions thanks to foreign investment in Ras al-Hekma, non-resident flows into the debt market, and new financing by international financial institutions, which was facilitated by improved policy settings, including: This resulted in greater flexibility in exchange rates and tightening monetary conditions, as foreign exchange reserves recovered.
The agency stressed that it is more confident that the more flexible exchange rate policy will prove to be more durable than in the past, and the risks threatening public finances have decreased moderately thanks to measures aimed at reducing off-budget public investment and expanding the tax base, while it expected a noticeable decrease. The interest burden on Egypt’s high domestic debt.
