Yesterday, Friday, the international rating agency Standard & Poor’s lowered Egypt’s long-term sovereign rating to “B-” (B-) from “B” (B), indicating increasing financing pressures on the country.
Egypt is facing an economic crisis that has led to a series of currency devaluations and record inflation, and has prompted more of its citizens to seek risky ways to leave the country.
Standard & Poor’s said the downgrade reflects repeated delays in implementing monetary and structural reforms in the country, among other factors.
A Reuters poll showed – last Thursday – that the Egyptian economy will grow more slowly than previously expected, with purchasing power eroding. Due to inflation and the weakness of the pound.
Standard & Poor’s added in a statement, “Inflationary pressures are likely to remain high, as we expect further weakness in the exchange rate.”
Earlier this month, Moody’s downgraded Egypt’s credit rating by one degree, attributing this to the deterioration of the country’s ability to bear debt.
Standard & Poor’s said, “Due to the foreign currency crisis, we expect GDP growth to slow further in fiscal year 2024,” and placed the country’s outlook at “stable.”
2023-10-21 07:52:53
#Standard #Poors #downgrades #Egypts #rating #financing #pressures
