Fitch Ratings yesterday affirmed National Bank of Egypt UK s ratings at Issuer Default BB+ , Short-term B , Individual C/D and Support 3 . The Outlook on the Issuer Default rating ( IDR ) is Stable. The IDR, Short-term and Individual ratings reflect NBE UK s strong balance sheet liquidity and solid capitalization, but also take into account the bank s modest profitability and concentrations on both sides of the balance sheet. Although NBE UK has reduced its exposure to Egyptian entities, the Egyptian market is a major source of funding for the bank. Upside potential for NBE UK s IDR and Individual rating could arise from a stronger core franchise and greater scale with a concomitant decline in concentrations. Downside risk is limited but could arise if concentrations were to increase or credit losses from the bank s expansion strategy were greater than expected. NBE UK is a wholly owned subsidiary of National Bank of Egypt (rated BB+ /Outlook Stable), the largest state-owned bank in Egypt. The bank is incorporated in the UK and supervised by the Financial Services Authority. NBE UK s activities are largely wholesale in nature and include money market dealing, debt securities, international syndications, commercial lending and trade finance.
