Capital Intelligence (CI), the international credit rating agency, announced that it has maintained Bank of Alexandria's (BoA) Financial Strength Rating (FSR) at 'BB' on the basis of Intesa San Paolo (ISP) management support, high gross income generation and satisfactory return on average assets (ROAA), improved capital adequacy ratio (CAR), and good liquidity (though subject to systemic risks).
Moreover, it has revised Financial Strength Rating outlook to stable from negative. CI also affirmed BoA’s Long-Term Foreign Currency Rating (FCR) at ‘B-’ and the Short-Term FCR at ‘B’, on a ‘Stable’ Outlook.
These ratings, which are constrained by CI’s sovereign ratings for Egypt (‘B-’/ ‘B’/'Stable’), denote significant credit risk – as the Bank’s capacity for timely fulfilment of financial obligations is very vulnerable to adverse changes in internal or external circumstances.
The Support Level of ‘3’ (affirmed) reflects a high likelihood of support from the Central Bank of Egypt (CBE) in case of need, as well as from ISP.
Moreover, it has revised Financial Strength Rating outlook to stable from negative. CI also affirmed BoA’s Long-Term Foreign Currency Rating (FCR) at ‘B-’ and the Short-Term FCR at ‘B’, on a ‘Stable’ Outlook.
These ratings, which are constrained by CI’s sovereign ratings for Egypt (‘B-’/ ‘B’/'Stable’), denote significant credit risk – as the Bank’s capacity for timely fulfilment of financial obligations is very vulnerable to adverse changes in internal or external circumstances.
The Support Level of ‘3’ (affirmed) reflects a high likelihood of support from the Central Bank of Egypt (CBE) in case of need, as well as from ISP.
Source:
Mubasher
