FT Tilt - Moody's sees Mideast banks facing manageable Egyptian challenges(Registration)

Moody's Investors Service identifies the Middle Eastern banks with significant credit exposure to Egypt, but doesn't see huge risks just yet:

Although several Middle Eastern banks have operations in Egypt, those with more significant exposures when measured against their total size include Lebanon's Bank Audi (Ba3 stable; D-/Ba3 stable), at 9%, Blom Bank (Ba3 stable; D-/Ba3 stable), at 6%, Jordan's Arab Bank (A3 stable; C+/A2 stable), at 6%, and Kuwait's National Bank of Kuwait (NBK, Aa2 stable; C+/A2 stable) at 6%. Egyptian exposures approximate group Tier 1 capital for Bank Audi and Blom Bank.

All named banking groups, particularly the Lebanese banks, are highly liquid and should not face immediate difficulties in meeting elevated deposit withdrawal demands. Even in the absence of a system-wide run on deposits, the population's pent-up need for cash after a week of bank closures will lead to higher than normal deposit withdrawals. The size of the named Middle Eastern banks' Egyptian subsidiaries remains modest compared with that of their respective parent groups and should receive adequate liquidity support if they need it.