OREANDA-NEWS. Fitch Ratings has assigned National Bank of Egypt's (NBE; B/Stable/b) upcoming US dollar senior unsecured bond an expected rating of 'B(EXP)'/'RR4'.

The final rating is contingent upon the receipt of final documents conforming to information already received.

The announced bond issue follows the first international bond issue by the Egyptian sovereign (B/Stable) earlier this month. It is the first international bond placement by NBE since August 2010 and the first by any Egyptian bank since 2011.

The notes will be issued by a Cayman Islands-domiciled special purpose entity, Nile Finance Limited. The notes will be unconditionally and irrevocably guaranteed by NBE and will rank as unconditional, unsubordinated and unsecured obligations of the bank.

KEY RATING DRIVERS
SENIOR DEBT
The notes are rated in line with NBE's Long-term IDR reflecting the unconditional and irrevocable guarantee provided by NBE and their senior status.

The Recovery Rating of 'RR4' indicates average recovery prospects for the bond (typical historical recoveries of between 31% and 50%).

RATING SENSITIVITIES
SENIOR DEBT
The notes' rating is primarily sensitive to a change in NBE's Long-term IDR. In addition, the rating is sensitive to a change in Fitch's assessment of the bond's likely 'average' recovery prospects in the event of default.

The rating action is as follows:

Nile Finance Limited:
Senior unsecured bond assigned at 'B(EXP)'