Bloomberg News

Commercial International Bank Slumps on Moody’s Egypt Report

December 12, 2011

Dec. 12 (Bloomberg) -- Commercial International Bank, the biggest publicly traded lender in Egypt, fell after Moody’s Investor Service said the country’s banks are increasingly vulnerable to sovereign credit risk because of their high exposure to government debt.

The shares of Commercial International Bank declined the most since Nov. 22, falling 4.4 percent to 21.37 Egyptian pounds, valuing the bank at 12.7 billion pounds ($2.1 billion).

Egypt’s political and financial instability is a “credit negative,” Moody’s said in an e-mailed statement today. The country’s new Cabinet is failing to address popular demands for transition to civilian rule from military rule, it said.

--Editors: Andrew J. Barden, Claudia Maedler

To contact the reporter on this story: Mahmoud Kassem in Cairo at mkassem1@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net


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