...Ratings Constrained by Sovereign: Commercial International 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, in case of need. The Stable Outlook reflects that on the Egyptian sovereign. The operating environment has a high influence on CIB's ratings. The VR is constrained by the bank's significant exposure to the Egyptian sovereign through holdings of sovereign securities (40% of total assets at end-1H19) and lending to public-sector companies (8.6% of total assets), which is equivalent to 4.3x Fitch Core Capital (FCC). The VR also reflects CIB's reasonable loan quality, consistently strong profitability, solid funding and sound liquidity, but only adequate capitalisation. Well-Maintained Asset-Quality Metrics: CIB's strong private-sector corporate franchise translates into good asset-quality metrics. Stage 3 loans represented only 5% of gross loans at end-1H19 but...
