Cairo: Fitch Ratings has raised the Long-Term Issuer Default Ratings (IDRs) of the largest four banks in Egypt following the recent upgrade of the country’s sovereign rating, a statement said on Tuesday 19/11/2024.

According to State Information Service Egypt, Fitch explained that these rating actions reflect the strong correlation between the banks’ creditworthiness and that of the Egyptian government, given the banks’ significant exposure to sovereign debt. The upgrade in the sovereign rating has positively influenced the financial outlook of these banks, enhancing their capacity to meet financial commitments.

The rating upgrade is seen as a pivotal development in Egypt’s banking sector, underscoring the intertwined nature of the banks’ financial health with the country’s economic climate. Fitch’s decision comes in the wake of an improved economic environment in Egypt, which has bolstered investor confidence and stability in the financial markets.