S&P pushes Egypt’s rating deeper into junk amid funding pressures

Date:

- Advertisement -

Global ratings agency S&P on Friday downgraded Egypt’s long-term sovereign credit rating by one notch to “B-” , citing the country’s mounting funding pressures.

Egypt is battling an economic crisis that has triggered a string of currency devaluations, record inflation, and pushed more of its citizens to seek risky routes out of the country.

S&P said the downgrade reflects the recurring delays to the implementation of monetary and structural reforms in the country, among other factors.

Egypt’s economy will grow slower than earlier predicted as inflation eats into purchasing power and the Egyptian pound weakens, a Reuters poll showed on Thursday.

“Inflationary pressures are likely to remain high as we expect further exchange-rate weakness,” S&P said in a statement.

Earlier this month, Moody’s downgraded Egypt’s credit rating by a notch, citing the country’s worsening debt affordability.

“Due to the foreign currency crunch, we expect GDP growth to slow further in fiscal 2024,” S&P added, while placing the country’s outlook at “stable”.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Subscribe

ADVERTISEMENT

Popular

More like this
Related

IMF: South Africa needs decisive efforts to cut spending

South Africa needs more decisive efforts to cut spending...

World Bank sounds alarm on ‘historical reversal’ of development for poorest nations

Half of the world's 75 poorest countries are experiencing...

Ghana fails to reach debt deal with international bondholders

Ghana has failed to strike a deal with two...

Nigeria files tax charges against Binance after executive flees custody

Nigeria has filed tax evasion charges against cryptocurrency platform...