The Clap
Despite maintaining Egypt’s credit rating at B+, Fitch Ratings has downgraded its outlook on the economy to “Negative”, down from “Stable”.
Deets
The rating agency attributed the downgrade to several factors, including but not limited to:
- Decline in foreign reserves; which are down significantly from earlier in the year
- Significant drop in non-resident portfolio outflow; as investors took their money out of government-issued debt in 2022
- High financing needs…& risk; as Egypt grapples with upcoming debt maturities & “reduced prospects for bond market access”
So what
The ratings provided by Fitch are utilized by investors, intermediaries like investment banks, & issuers of debt & businesses.
Now what
You can read the full report here, with all the factors the agency included & their rationale.
