Fitch affirms Egypt's CIB at 'BB+'; Outlook Positive

The bank's other ratings are affirmed at Individual 'C' and Support '3'. The Support Rating Floor is affirmed at 'BB'.

CIB's Long-term foreign currency IDR is constrained by the Country Ceiling, which is the same level as Egypt's Long-term foreign currency IDR ('BB+'/Positive Outlook).

Any rating action would require a change in the Country Ceiling.

The ratings reflect the strength of the bank's management, its good corporate franchise, consistently strong profitability and adequate credit risk management.

However, they also take into account the volatility of the bank's operating environment.

In the context of the operating environment, capitalisation is only adequate.

CIB has one of the highest profitability ratios among its peers, and is the most profitable in absolute terms.

Strong performance in 2007 was maintained during Q108, with solid growth both in interest and fee income.

Almost all the bank's business and profits are generated from its corporate banking activities.

However, management is focused is on expanding retail and SME banking, and is planning to have the retail/SME portfolio account for about 40% of total lending by 2011 (currently 10%) and about half of the bank's profits.

CIB is Egypt's largest private-sector bank by assets, accounting for about 5% of system assets and loans, and almost 7% of system deposits.

Note to Editors: 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.