S&P changes Egyptian banks to negative

S&P said it revised its outlooks on National Bank of Egypt, Banque Misr, and Commercial International Bank (Egypt) SAE to negative from stable and affirmed its B-/C long- and short-term counterparty credit ratings on all three banks.

The outlook revision on the banks follows a similar rating action on Egypt.

The outlook revision on Egypt reflects S&P’s view of a gradual increase in the country's fiscal and external vulnerabilities.

The agency expects economic recovery in Egypt to continue being hindered by foreign exchange shortages and a significant drop in tourism revenue. It also expects current account deficits to widen to 4.8% of GDP in 2016-2019, and net general government debt to rise to about 85% of GDP during the same period.

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