Egypt's Bank of Alexandria downgraded by Moody's

Egypt: Egypt’s Bank of Alexandria’s local-currency deposit rating for one notch has been downgraded by Moody’s Investors Service downgraded to B3 from B2, with ‘negative’ outlook, Ahram has reported. The action follows the lowering of the standalone baseline credit assessment of Intesa Sanpaolo (Intesa), Bank of Alexandria’s parent bank with a 70.25 percent stake, to Baa3 from Baa2, which in Moody’s view reduces Intesa’s capacity and potentially its willingness to support the Egyptian bank. Moody’s cited the “stressed operating environment'” in Egypt, which it has rated Caa1, with a negative outlook, as a reason to expect the weakening of Bank of Alexandria’s asset quality and profitability, and subsequently Intesa’s incentive to support it in the future. []

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