Global Courant 2023-05-10 13:01:27
Fitch Ratings on Friday downgraded Egypt’s rating by one notch from “B+” to “B”, while converting its outlook to “negative”, indicating that it may downgrade further in the coming months due to a host of economic concerns.
In a statement, the agency cited the increase in external financing risks in the face of high financing needs and the tightening of external financing conditions, noting that Egypt’s high sovereign debt still represents a major weakness in the rating.
Professor of business administration and economist Ahmed Mostafa confirmed that under President Abdel Fattah al-Sisi, the state has adopted an unprecedented economic reform plan to advance the national economy by establishing comprehensive and sustainable economic development across all sectors.
He added: “What is issued by the global credit rating agencies, Fitch and Standard & Poor’s, and their negative view of the Egyptian economy does not match reality.”
“This requires the continued release of official statements and press conferences in the presence of the international media, to respond to the negative statements made by these institutions aimed at hindering the Egyptian economy and putting pressure on the state, especially in the stock of foreign investment and the inflow of its capital.”
Mostafa explained that had it not been for severe global economic crises — starting with the outbreak of the coronavirus pandemic and the Russo-Ukrainian war — Egypt’s economy would have enjoyed sustained growth.
Despite these severe economic crises, Mostafa noted that Egypt’s economy has become stronger and more resilient in the face of these challenges.
He added that Egypt’s banking sector has not experienced any collapse or government delay in paying obligations to others, in addition to the rise in foreign reserves to $34.55 billion at the end of April, demonstrating the strength and sustainability of the Egyptian economy and its resilience in the face of these challenges.
