Moody’s Considers Downgrading Egypt’s B3 Ratings

Moody’s has put Egypt’s B3 foreign-currency and local-currency issuer rating under review for a possible downgrade. The decision was made due to the slower progress than expected in the state-owned asset sale.

Despite the recent sharp depreciation of the Egyptian pound, Egypt continues to grapple with an ongoing shortage of foreign currency.

Moody’s has pointed to the potential risks surrounding Egypt’s financing strategies as a key factor in their decision to put the country’s currency issuer ratings under evaluation for a possible downgrade.

Slow progress with its asset sale strategy weakens Egypt’s foreign exchange liquidity and erodes confidence in its currency, the ratings agency said.

The asset sale is a key component of the country’s deal with the International Monetary Fund (IMF).

(Reuters)