Fitch Ratings has upgraded Commercial International Bank (Egypt) S.A.E. (CIB) 's Long-Term Issuer Default Rating (IDR) to 'B' from 'B-' and its Viability Rating (VR) to 'b' from 'b-'. The Outlook is Stable.
The rating action follows the upgrade of Egypt's sovereign rating and reflects the strong correlation of the bank's creditworthiness with that of the Egyptian sovereign given the bank's significant exposure to the Egyptian sovereign. Accordingly, the bank's credit profile benefits from a stronger sovereign credit profile.
The upgrade also reflects better operating conditions for banks with foreign-currency (FC) liquidity conditions improving significantly compared with last year. In addition, real GDP growth is expected to pick up, inflation to decline over the next two years and the Egyptian pound (EGP) exchange rate to remain broadly stable by end-2025.
The bank's National Ratings are unaffected by this rating action.
