Cairo – Mubasher: Moody's Investors Service affirmed Egypt’s long-term foreign and local currency issuer ratings at B2 with a stable outlook.
The affirmation reflects the country’s “ongoing credit strengths and challenges that Moody's does not expect to change materially relative to similarly-rated sovereigns through the global shock posed by the coronavirus pandemic,” according to a statement on Monday.
The international credit rating agency said that the outbreak will “delay, but not derail” the government's efforts to narrow its debts.
The fiscal deficit is expected to account for 7.9% of the country’s gross domestic product (GDP) during the current fiscal year and 8.5% in FY20/21, “bringing a gradual narrowing of the deficits in recent years to a temporary halt.”
Egypt's liquid foreign exchange reserve buffer is forecast to drop to $30 billion at the end of 2020, pressured by higher external funding needs and lower capital inflows, compared to $42 billion in February.
