Global Courant
Global rating agency Standard & Poor’s on Friday downgraded Egypt’s long-term rating from “B” to “B-,” indicating increased financing pressure on the country.
Egypt is facing economic challenges that have led to a series of currency devaluations and record inflation, with rising costs for basic imports due to the Russian-Ukrainian war.
According to Standard & Poor’s, the downgrade reflects, among other things, repeated delays in implementing monetary and structural reforms in the country.
A Reuters poll on Thursday showed Egypt’s economy will grow more slowly than previously expected, with purchasing power eroding due to inflation and the weakness of the Egyptian pound.
“Inflationary pressures are likely to remain elevated as we expect further exchange rate weakening,” Standard & Poor’s said in a statement.
Earlier in October, rating agency Moodys has downgraded Egypt’s credit rating by one notch, which it attributes to the deterioration of the country’s ability to maintain its debt levels.
“Due to the currency crisis, we expect GDP growth to slow further in fiscal 2024,” Standard & Poor’s said, putting the country’s outlook at “stable.”
