National Societe Generale Bank's Foreign Currency Rating lowered following Egypt Sovereign Ratings Action

The Outlook for these Ratings remains 'Negative'. The Support Level of '2' is maintained, denoting a very high likelihood of support from the new shareholder (subject to regulatory approval) Qatar National Bank, as well as from the Central Bank of Egypt, in case of need. The Bank's Financial Strength Rating of 'A-', on 'Negative' Outlook, is affirmed.

These actions are in line with CI's recent downgrade of Egypt's Sovereign Long-Term Foreign Currency Rating to 'BB-' from 'BB+'. The Sovereign Short-Term Foreign Currency Rating of 'B' was maintained. All Sovereign Ratings remain on 'Negative' Outlook.

NSGB's Financial Strength Rating is vulnerable to downward pressure, as is the case with other Egyptian banks, in the face of an ongoing difficult operating environment compounded by significantly weakened post-revolution macroeconomic indicators.

Although, as a group, Egyptian banks have so far adeptly managed their balance sheets in the face of continued elevated credit and political risks, the current operating conditions in Egypt are likely to place additional strain on NSGB's credit metrics over the near-term.