She attributed it to the decline in its foreign exchange reserves and its ability to absorb external shocks
Moody’s downgraded Egypt’s sovereign rating by one notch to (B3) from B2), pointing to the decline in its foreign exchange reserves and its ability to absorb external shocks.
The agency changed its outlook for Egypt to stable from negative.
Moody’s said that it does not expect a rapid recovery of liquidity in Egypt and an improvement in its external situation, according to Reuters.
Egypt continues to face a shortage of foreign exchange despite allowing the Egyptian pound to depreciate sharply in the past few months.
The agency also lowered Egypt’s local currency ceilings to (Ba3) from (Ba2).
Egypt’s headline inflation is expected to accelerate further in January after jumping to a five-year high in December, according to a Reuters poll.
