The Clap
Fitch Ratings affirmed Egypt’s Issuer Default Rating at (B+), & S&P Global reinforced its (B/B) rating, with both credit rating agencies maintaining a stable future outlook for the Egyptian economy.
The deets
Fitch’s rating was driven by the $4.7 billion decline in the CBE’s reserve of foreign currency to $35 billion last March, due to a portfolio outflow of $2.5 billion.
Fitch’s report highlighted how the UAE’s $2 billion worth of investments, & the ongoing plans of Saudi Arabia and Qatar to inject billions of dollars played a role in supporting and balancing the Egyptian economy.
S&P indicated in its report that high oil prices would be of minimal effect, as Egypt generally achieved self-sufficiency in natural gas, in addition to achieving a surplus in the oil trade balance.
Why this matters
The Ministry of Finance stated that both agencies’ ratings enhance investors’ confidence in the Egyptian economy, & support the current economic reforms.
For the full Fitch report, click here.
