QNB ALAHLI‚Äôs long-term foreign currency rating upgraded following Sovereign rating action
Capital Intelligence Ratings (CI Ratings or CI), the international credit rating agency, today announced that it has upgraded QNB ALAHLI’s (QNB AA) Long-Term Foreign Currency Rating (FCR) to ‘B’ from ‘B-’, following CI Ratings’ recent upgrade of Egypt’s Sovereign Long-Term FCR to ‘B’ from ‘B-’.
The Bank’s Short-Term FCR was affirmed at ‘B’. The Outlook for the FCR remains ‘Stable’. In common with the other Egyptian banks, QNB AA’s FCRs remain constrained by Egypt’s Sovereign FCRs (‘B’/’B’/‘Stable’). Accordingly, there is a high degree of correlation between the Bank’s FCRs and the Sovereign’s creditworthiness. Any further improvement in Egypt’s creditworthiness would have a corresponding effect on the Bank’s FCRs. CI also affirmed QNB AA’s Financial Strength Rating (FSR) at ‘BBB-’ with a ‘Stable’ Outlook, and maintained the Support Rating at ‘2’.
QNB AA was established in 1978 as a joint-venture between state-owned National Bank of Egypt, with a 51 per cent share, and Societe Generale, with an initial 49 per cent stake, subsequently increased to 77.17 per cent. In March 2013 the French bank sold its participation to Qatar National Bank, which has since increased its ownership to 97.12 per cent by buying out other shareholders. QNB AA is the second largest private sector bank in the Egyptian market. While the Bank continues to concentrate primarily on corporate lending, the increasing importance of its retail banking operation is bringing diversification to risk assets and earnings. As at end March 2017, the Bank’s total assets were EGP 195.8 billion ($10.8 billion) and total capital was EGP 18 billion ($995 million).