Egypt’s Sovereign Ratings Affirmed with a Stable Outlook

Ref : EG19CRA00- 26th September 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 the Long-Term Foreign Currency Rating (LT FC R ) and Long-Term Local Currency Rating (LT LC R ) Issuer Ratings of Egypt at ‘B +’ . T he sovereign’s Short-Term Foreign Currency Rating (ST FC R ) and Short-Term Local Currency Rating (ST LC R ) have also been affirmed at ‘B’. The Outlook for all the ratings remains Stable.

RATING RATIONALE

The ratings reflect declining external vulnerabilities given the narrowing current account deficit, increasing current account receipts and adequate foreign exchange reserves . Th e ratings are also supported by improving, albeit still weak, fiscal strength, including a lower budget deficit and declining government debt . The ratings are constrained by…