Global Arab Network | Fitch Rates National Bank of Egypt $ 600 Million Notes BB+ with a Stable Outlook

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Fitch Rates National Bank of Egypt $ 600 Million Notes BB+ with a Stable Outlook

Global Arab Network - - Mohammed Almasri

Monday, 09 August 2010 11:48

Fitch Ratings has assigned the National Bank of Egypt's (NBE) USD600m 5.25% guaranteed notes due 2015 a final rating of 'BB+'.

NBE has a Long-term Issuer Default Rating (IDR) of 'BB+' with a Stable Outlook, a Short-term IDR of 'B', an Individual Rating of 'D' and a Support Rating of '3'. The bank also has National Long- and Short-term ratings of 'AA(egy)' and 'F1+(egy)' respectively.

The notes will be issued by a special purpose entity, Nile Finance Limited, which is incorporated in the Cayman Islands. All payments to be made in respect of the notes will be unconditionally and irrevocably guaranteed by NBE. The notes will rank as unconditional, unsubordinated and unsecured obligations of the bank. The notes' rating is therefore in line with NBE's Long-term IDR.

NBE is wholly owned by the Egyptian government. It is by far Egypt's largest bank by assets, with a dominant domestic franchise, especially on the funding side, and accounts for over a quarter of total system deposits and over a fifth of loans. NBE offers a range of retail, wholesale and some investment banking services through its extensive branch network.

Fitch's National ratings provide a relative measure of creditworthiness for rated entities in countries with relatively low international sovereign ratings and where there is demand for such ratings. The best risk within a country is rated 'AAA' and other credits are rated only relative to this risk.

National ratings are designed for use mainly by local investors in local markets and are signified by the addition of an identifier for the country concerned, such as 'AAA(egy)' for National ratings in Egypt. Specific letter grades are not therefore internationally comparable.

Global Arab Network

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