...Standalone Strength Drives IDRs: Commercial International Bank (Egypt) S.A.E's (CIB) Issuer Default Ratings (IDRs) are driven by its standalone creditworthiness, as expressed by its Viability Rating (VR). The operating environment has a high influence on the bank's VR and drives the Rating Watch Negative (RWN). Rating Watch Negative: The RWN on CIB's Long-Term IDR, VR and National Ratings reflects our expectations that the bank will face material pressure from a weaker operating environment and tightening of foreign-currency (FC) liquidity as a result of the COVID-19 pandemic. The RWN will be resolved when Fitch Ratings has more clarity on the impact of these pressures on CIB's credit profile. Expected Pressures on Asset-Quality: CIB's strong private-sector and multinational corporates franchise translates into better asset-quality metrics than domestic peers. Stage 3 loans represented only 4.1% of gross loans at end-1H20 and total reserve coverage of Stage 3 loans of 255% was much higher...
