Egypt’s Sovereign Ratings Affirmed with a Stable Outlook

Ref : EG 20 CRA 00- 1 6 March 2020

Egypt’s Sovereign Ratings Affirmed with a Stable Outlook

RATING ACTION

Capital Intelligence Ratings (CI Ratings or CI ) today announced that it has affirmed the Long-Term Foreign Currency Rating (LT FC R ) and Long-Term Local Currency Rating (LT LC R ) 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 the ratings remains Stable.

RATING RATIONALE

The ratings reflect the continued decline in external vulnerabilities due to the narrowing of the curr ent account deficit and the strengthening of the foreign exchange reserves buffer , which helps the country to weather mild external shocks. The ratings are also supported by moderate external indebtedness and improving – albeit still low – fiscal strength , as evidenced by increasing primary surpluses and…