Egypt’s Sovereign Ratings Affirmed with a Stable Outlook

Ref : EG2 2 CRA00-0 1 8 April 2022

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 , as well as the recently demonstrated support from GCC member states . The ratings are also supported by moderate public external indebtedness and prudent fiscal management that has helped to keep the central government primary budget in surplus .

The ratings are constrained by substantial socioeconomic imbalances (including high unemployment and widespread…