Cairo – Mubasher: Capital Intelligence Ratings (CI) has affirmed Banque du Caire's financial strength rating at 'BB-', with a stable outlook.
The international credit rating agency said that the bank’s rating was supported by its tier 2 capital increase and the improvement of the bank’s capital adequacy ratio (CAR), liquidity, and probability during the first nine months of 2018, according to a statement released on Tuesday.
“The factors constraining the FSR are ongoing high sovereign risk and challenging operating conditions, concentration in government securities (although reduced), and the decline in total capital to total assets ratio. Also constraining the FSR are customer concentrations in both loans and deposits,” CI added.
The rating agency also affirmed Banque du Caire's long- and short-term foreign currency ratings (FCRs) at 'B+' and 'B', respectively, with a stable outlook.
“These ratings are constrained by CI Ratings' Sovereign Ratings for Egypt ('B+'/'B'/Stable), and therefore remain correlated with Egypt's creditworthiness,” CI revealed.
Banque Du Caire posted a 53.8% year-on-year profit surge during the first nine months of 2018, recording EGP 2 billion.