Moody’s upgrades credit ratings of five local banks, with stable outlook: Moody’s has upgraded our friends at CIB along with Banque du Caire, the National Bank of Egypt, Banque Misr, and Bank of Alexandria’s credit ratings, the agency said in a statement. The first four banks saw their long-term local-currency deposit ratings improve to B2 from B3, while Alexbank rose to B1 from B2. The agency changed its local currency deposit outlooks for all banks to stable from positive. The banks also saw their long-term foreign currency deposit rating upgraded to B3 from Caa1.

Moody’s has also upgraded the banking sector’s macro profile to Weak from Very Weak, following last week’s sovereign credit upgrade to B2. This reflects the strengthening economic fundamentals and improving operating conditions in the banking sector.

Egypt’s macro profile is being held back by low income levels, high unemployment and tight credit conditions, Moody’s said. Credit remains restricted due to a high concentration of borrowers, legal gaps for secured lending and a growing number of high-risk SME loans.