Egypt – Outlook Revised to Negative; Ratings Affirmed

Ref: EG 24 CRA00- 01 23 February 2024

Egypt – Outlook Revised to Negative ; Ratings Affirmed

Rating Action

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has revised the Outlook on Egypt’s Long-Term Foreign Currency Rating (LT FCR) and Long-Term Local Currency Rating (LT LCR) to Negative from Stable. At the same time, CI Ratings has affirmed the sovereign’s LT FCR and LT LCR at ‘B’, and Short-Term (ST) FCR and ST LCR at ‘B’.

Rating Rationale

The change in the outlook reflects increasing external financing risks, aggravated by spillovers from the war in Gaza and the escalation in the Red Sea . Gross external financing needs have increased while financing options are limited . Although the International Monetary Fund ( IMF ) and international allies are likely to step up their reform – linked financial assistance to Egypt, we do not currently expect the level of support or pace and depth of…