Fitch lowered the credit ratings of four Egyptian banks, including the country’s largest private bank, citing increased risks to external financing, macroeconomic stability, and the already high government debt situation.
Late yesterday, Monday, Fitch downgraded the ratings of the National Bank of Egypt, Banque Misr, and Banque du Caire, which are government banks, as well as the private Commercial International Bank, to “B-minus” from “B” with a future outlook. stable.
On November 3, Fitch Ratings downgraded the… Egypt’s credit rating In the long run, foreign currency rates fell to “minus B” (-B), down from “B” (B), indicating increased risks on external financing.
She said at the time that Egypt’s proximity to the conflict between Israel and the Palestinian resistance and the potential influx of refugees increases security risks, especially in the Sinai region.
The agency added, “The war between Israel and the Islamic Resistance Movement (Hamas) poses major negative risks to tourism in Egypt.”
Likewise, Moody’s and Standard & Poor’s downgraded the credit ratings of the country and the four banks to junk territory last month.
Egypt is facing an economic crisis amid record inflation and a severe shortage of foreign currency, in addition to the rise in borrowing over the past eight years, which has made repaying foreign debt an increasingly burdensome burden.
Core inflation in Egypt recorded 38.1% on an annual basis last October, compared to 39.7% last September.
Cairo imposed restrictions on imports in light of the shortage of foreign currencies, and at least two banks suspended the use of debit cards in pounds (the local currency) outside the country to stop the bleeding of currencies.
Monetary authorities have devalued the pound three times since early 2022, as the local currency lost nearly half of its value against the dollar.