Capital Intelligence lowers Egypt’s LT FCR, LT LCR to B
Updated 9/3/2023 8:02:00 AM
Arab Finance: The rating agency Capital Intelligence Ratings (CI) has downgraded Egypt’s long-term foreign currency rating (LT FCR) and long-term local currency rating (LT LCR) to B from B+, the agency revealed.
The agency has revised its outlook on the country’s LT FCR and LT LCR to stable from negative, while affirming the sovereign's ST FCR and ST LCR at B.
Moreover, the agency revealed that lowering the rating reflects the uncertainty and increasing risks of external financing, given the country’s high demand for external funding.
It ascribed this uncertainty to the nature of the state’s economic reform, which depends mainly on external financing, along with the challenges facing the country to access capital markets amid the high costs.
On the other hand, the agency attributed its stable outlook to Egypt’s moderate external debts, accounting for 43% of the gross domestic product (GDP), as well as the probability of getting support from the Gulf Cooperation Council (GCC) and the International Monetary Fund (IMF).
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