Fitch rates Orascom bond A-(egy)

Fitch Ratings said it assigned Orascom Construction Industries a national senior unsecured rating of AA-(egy) based on audited consolidated accounts. The outlook is stable.

Fitch has also assigned the national rating on the company's EGP400 million senior unsecured bonds (on unconsolidated basis) at A-(egy).

Orascom Construction's ratings reflect its leading position as a contractor and cement producer both in Egypt and the Middle East and North Africa region. The majority shareholder stake held by the Sawiris family further boosts the company's reputation and indicates long-term commitment to the company's growth.

Fitch noted, however, that the company is subject to the general risk nature of the construction sector and the backward linkages within the group. The extent of future inter-company transactions adds to the company's complex group structure, while its regional move is likely to expose the company to new political and/or economic risks.

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