Morgan Stanley downgrades Egypt's credit rating to dislike stance
Updated 10/3/2023 8:43:00 AM
Arab Finance: Morgan Stanley has downgraded Egypt’s sovereign credit rating to “dislike stance” from a “neutral”, Bloomberg reported.
The investment bank also cited various risks, including the coming presidential election, the threat of a downgrade by Moody’s, and challenges with a $3 billion International Monetary Fund (IMF) program.
The decision comes amid concerns over the North African country’s financing needs, which are estimated at $24 billion through June 2024, in addition to the depreciation of the country's dollar debt by roughly 10% this year.
This is along with the impact of the Russian invasion of Ukraine, which negatively affected sentiment toward riskier assets, including Egypt.
Investors will shift their focus on Egypt’s syndicated loans due in the second half of 2024, including two facilities worth a total of $5 billion from UAE banks, the bank’s strategists said.
Gulf Arab countries are likely to support Egypt financially, they added.
Related News
