Fitch cuts Egyptian banks

Fitch Ratings said it downgraded the long-term foreign currency issuer default ratings of National Bank of Egypt, its wholly owned subsidiary National Bank of Egypt (UK) Ltd. and Commercial International Bank to B- from B.

The outlooks are negative.

Credit Agricole Egypt's support rating was affirmed at 4.

Fitch said the downgrades and negative outlooks reflect the July 5 downgrade of the Arab Republic of Egypt's ratings.

The support ratings were downgraded to 5 to reflect the reduced ability of the Egyptian authorities to provide support. The banks' support rating floors were revised to B-.

Fitch also downgraded National Bank of Egypt's and Commercial International Bank's viability ratings based on the likely impact of the heightened political uncertainty on the operating environment in Egypt and hence on the banks' performance and asset quality.

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