Egypt’s Sovereign Ratings Affirmed with a Stable Outlook
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Summary
Ref : EG 20 CRA 00- 0 2 4 September 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 been affirmed at ‘B’. The Outlook for the ratings remains Stable.
Rating Rationale
The ratings reflect the country’s relative economic resilience and adequate – albeit declining – level of foreign exchange reserves , aided by the continued support of the IMF in countering the adverse impact of C ovid- 19. The ratings are also supported by moderate external indebtedness and the government’s willingness to resume fiscal reforms.
The ratings are constrained by substantial socioeconomic…