... Bank (Egypt) S.A.E's (CIB) Long-Term Issuer Default Rating (IDR) is driven by its Viability Rating (VR) and underpinned by potential support from the Egyptian authorities if needed. The VR is constrained by CIB's significant exposure to sovereign debt (40% of total assets at end-3Q18), w hich means that the bank's risk profile is strongly correlated w ith that of the Egyptian sovereign. The VR also considers CIB's healthy loan quality, solid funding and sound liquidity, capitalisation that is stronger than peers and consistently strong profitability. Challenging Operating Environm ent: The operating environment has improved but economic activity is expected to remain subdued given the high interest rates. Fitch Ratings expects banks to continue deploying excess liquidity in sovereign securities as demand for credit is not expected to be strong enough to absorb banks' excess liquidity. Healthy Asset Quality: CIB has a strong corporate franchise...
