LONDON, December 23 (Fitch) Fitch Ratings has upgraded the Long-term Issuer Default Ratings (IDR) of National Bank of Egypt SAE (NBE) and Egypt-based Commercial International Bank (CIB) to ‘B' from ‘B-‘ with Stable Outlook.At the same time, we have upgraded NBE's Viability Rating (VR) to ‘b' from ‘b-‘ and affirmed CIB's VR at ‘b'. We have also upgraded NBE's and CIB's Support Ratings to ‘4' from ‘5' and revised the Support Rating Floors (SRF) to ‘B' from ‘B-‘. NBE's National Long-term Rating has been upgraded to ‘AA(egy)' from ‘AA-(egy)'.We have affirmed Credit Agricole Egypt's (CAE) Support Rating at ‘4' and its National Long- and Short-term Ratings at ‘AA+(egy)' and ‘F1+(egy)', respectively.The Long-term IDR of National Bank of Egypt (UK) Ltd (NBEUK), a wholly-owned subsidiary of NBE, has been upgraded to ‘B' from ‘B-‘ with Stable Outlook. At the same time, its Support Rating has been upgraded to ‘4' from ‘5'.The rating actions reflect Fitch's upgrade of Egypt's sovereign rating to ‘B' from ‘B-‘ (see ‘Fitch Upgrades Egypt to ‘B'; Outlook Stable', dated 19 December 2014 at www.fitchratings.com).Due to NBE's and CIB's almost exclusively domestic focus as well as their significant credit exposure to Egyptian sovereign debt we believe the correlation between bank risk and sovereign risk to be strong, underpinning the upgrade of NBE's VR, the upgrade of NBE's and CIB's Support Ratings and the revision of their SRFs.
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