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00:00 We will now go to the estimates of the trust-based institutions.
00:05 Moody's gives the rankings and confirms that the five Egyptian banks remain unchanged.
00:13 But the agency changed its future view of the long-term deposits rankings to a negative one from a stable one.
00:21 Of course, we will go over these banks, but what is the reason behind that?
00:25 The agency says that it has kept the long-term deposits rankings for three government banks,
00:30 which are the Egyptian, Egyptian, Cairo, and international trade, at the CWA1 ranking,
00:37 and it has kept the Iskanderi Bank ranking at B3.
00:41 This comes as Moody's reduced last week the future views of the government exports rankings and the Egyptian bonds to a negative one from a stable one.
00:49 This will certainly affect the banks.
00:51 I always remind our viewers that the government's sovereign rating is the highest rating,
00:57 and therefore any bank listed in the market or dealing with it in the market must have a rating,
01:03 either of the same sovereign rating or less than it.
01:05 Therefore, even if any bank has a better sovereign rating and a better future view,
01:10 it must have the same rating of the sovereign rating or less than it.
01:15 I would like to reiterate that the agency confirms the ranking of foreign and local currencies
01:20 on the short and long term, also because it is in the bubble.
01:26 The view moves from a stable to a negative one on the Cairo Bank, the Egyptian People's Bank, as we mentioned, the CIP, and the Iskanderi Bank.
01:34 The reasons are, of course, clear.
01:36 We have a high risk of assets, especially with transactions, of course, with the return of the currency exchange rate.
01:42 Let's not forget that investment in deposits has begun to decline, even if the returns on deposits were very strong.
01:49 It is no longer tempting, especially for deposits in the local currency.
01:52 The rise in the dollar reached 60 pounds, and we have exceeded the dollar by 60 pounds,
01:58 and therefore these are considered challenges.
02:00 The difficulty of restabilizing the entire economy in general.
02:03 We have a fight, of course, for reasons of constraint in the existence of foreign currency reserves,
02:10 and on the other hand, we have a surge in numbers, a surge that is still pressing on the necks of many manufacturers,
02:18 and we also have consumers in Egypt.
02:20 The weakening of the financial situation in Egypt is also another reason for the agency to move the view, at least, and not the ranking.
02:26 Moodies changes its view of the Egyptian economy to a negative one.
02:31 Of course, as I mentioned, the CWA-1 and the view to a negative one.
02:36 This ranking is still one of the rankings that we can say is somewhat positive for the number of banks,
02:44 but the cost of inflation in the repayment of commitments or the cost of CDS, of course, in Egypt is good.
02:52 It reached in the previous months, last year, clear rises of 30 percent,
02:58 and now we see that the CDS of Israel, its bonds and loans, reached a rise of more than 80 percent.
03:07 So this was the financial wall that the top five banks put Moodies under its view.