The Clap
Credit rating agency Standard & Poors has lowered the credit outlook for the Commercial International Bank, Banque Misr, & the National Bank of Egypt from stable to negative.
What
This step comes after the same agency lowered its outlook for Egypt’s debt instruments as a result of slow progress in the state’s privatization program & uncertainty surrounding the Egyptian Pound.
So What
S&P’s report stated that these banks would be significantly affected in the event that Egypt defaults on its debt due to their high exposure to the economy.
Now What
A lower credit outlook signals a possible future downgrade of the banks’ actual credit ratings, which currently stand at a B rating.
