Egypt – Ratings Affirmed; Outlook Remains Stable
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Summary
Ref: EG 2 5 CRA00- 0 1 14 February 2025
Egypt – Ratings Affirmed ; Outlook Remains Stable
Rating Action
Capital Intelligence Ratings (CI Ratings or CI) today announced that it has affirmed Egypt’s Long-Term Foreign Currency Rating (LT FCR) and Long-Term Local Currency Rating (LT LCR) at ‘B’ . At the same time, CI Ratings has affirmed the sovereign’s Short-Term (ST) FCR and ST LCR at ‘B’. The Outlook o n the r atings remain s Stable.
Rating Rationale
The ratings reflect Egypt’s improving shock absorption capacity and easing external liquidity pressures. This is attributable to the availability of significant reform-linked financial assistance from the IMF, the World Bank and the EU , as well as the proceeds from the Ras El Hekma agreement in FY24. These funds allowed the government to move to a more flexible exchange rate regime, address foreign currency shortages , and gradually restore macroeconomic stability…