Egypt – Outlook Revised to Stable; Ratings Affirmed Rating Action
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Summary
Ref: EG 24 CRA00- 0 2 23 August 2024
Egypt – Outlook Revised to Stable; 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 Stable from Negative . 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 the decline in external financing risks and improving shock absorption capacity since our last review. This is attributable to the availability of significant reform-linked financial assistance from the IMF, the World Bank (WB) and EU, and to the proceeds of the Ras Al Hikma investment agreed with the Abu Dhabi Developmental Holding Company (ADQ). These developments have largely resolv ed the latest foreign currency shortages in…