Egypt's economy takes another hit with rating downgrade
Moody’s also said Egypt’s ability to generate domestic funding will help its economic outlook.
A leading credit rating agency downgraded Egypt’s rating Tuesday.
Moody’s downgraded Egypt’s long-term foreign and local-currency issuer ratings from B2 to B3, indicating higher credit risk. The New York-based firm noted Egypt’s “reduced external buffers” as the economy transitions to an export and private sector-focused one with a flexible exchange rate. Moody’s also noted a decline in Egypt’s currency foreign reserves since the last rating in May of 2022.
Moody’s also revised their economic outlook for Egypt from “negative” to “stable.” Moody’s said Egypt’s liquidity risks are “mitigated by the government's dedicated domestic funding base and the government's track record of consistently generating primary surpluses.”
Moody’s retained Egypt’s B2 rating back in May of 2022 but changed the outlook to “negative” at the time, indicating they anticipated a change to the rating.
