Egypt’s Sovereign Ratings Affirmed, with a Stable Outlook

Ref : EG1 9 CRA 00- 1 1 st March 2019

Egypt’s Sovereign Ratings Affirmed, with a Stable Outlook

RATING ACTION

Capital Intelligence Ratings (CI Ratings or CI ) , the international credit rating agency, today announced that it has affirmed Egypt ’s Long-Term Foreign Currency (LT FC) and Long-Term Local Currency (LT LC) Issuer Ratings at ‘B +’ . T he sovereign’s Short-Term Foreign Currency (ST FC) and Short-Term Local Currency (ST LC) Ratings have also been affirmed at ‘B’. The Outlook for the ratings remains Stable.

RATING RATIONALE

The economic situation in Egypt continued to improve in 2018 , supported by the implementation of the reforms agreed in the Extended Fund Facility ( EFF ) programme. More specifically, r eal output growth exceeded expectations, inflationary pressures that emerged after the transition to a flexible exchange rate regime began to abate, and investor confidence picked up. However, significant…