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 woman walks out of a currency exchange shop displaying a giant US dollar banknote.
A woman walks out of a currency exchange shop displaying a giant US dollar banknote in the Zamalek district of Egypt's capital, Cairo, on Aug. 24, 2022. Depleted foreign currency reserves are casting a shadow on Egyptian streets, with the government moving to dim lights to free up energy for export. - KHALED DESOUKI/AFP via Getty Images
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Adam Lucente
@Adam_Lucente

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. 

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