International credit ratings agency Moody's upgraded the local currency (LC) deposit ratings of five Egyptian banks following an upgrade to the country’s sovereign credit ratings to B3.

The National Bank of Egypt, the largest bank in the country; Egypt-based Commercial International Bank, the country’s largest private bank; Banque Misr SAE and Banque Du Caire SAE were upgraded to B3 from Caa1 with a stable outlook.

Bank of Alexandria SAE was also upgraded to B2 from B3.

The upgrade reflects what the agency says is improved government ability to support these banks, as well as enhancements in the banks’ liquidity buffers.

“Egypt's improving macroeconomic performance and the easing of external vulnerabilities will support increased lending opportunities,” Moody’s asserted in a press release.

Egypt’s government has been undertaking fiscal and regulatory reforms to improve the macroeconomic standing and business environment since President Abdel Fattah El-Sisi took office last year.

The banks' foreign--currency (FC) deposit ratings were upgraded to Caa1 from Caa2 to reflect the increase in the FC deposit ceiling for Egypt to Caa1, according to the release.

Earlier this week, Moody's upgraded Egypt's sovereign credit rating to B3 from Caa1 with a stable outlook following similar decisions by Standard and Poor's and Fitch at the end of 2014.