A Moody's sign is displayed on 7 World Trade Center, the company's corporate headquarters in New York, February 6, 2013. REUTERS/Brendan McDermid A Moody's sign is displayed on 7 World Trade Center, the company's corporate headquarters in New York, February 6, 2013. REUTERS/Brendan McDermid

Moody’s keeps Egypt’s credit rating at B2

By: MENA
Tue, Apr. 21, 2020
LONDON - 21 April 2020: According to a Moody’s report published Saturday, a copy of which MENA obtained, the credit profile of Egypt (issuer rating B2) is supported by "A3" economic strength.

A3 is the seventh highest rating a debt issuer can receive, denoting that Egypt’s financial and banking system is solid with a low risk of default.

The rating reflects the country's large and diversified economy with robust growth prospects. Yet, Moody’s classified Egypt with B1 for institutions and governance strength balances, adding that they are relatively weak but improving, with important progress on fiscal and economic reforms.

The B1 rating means that the issuer is relatively risky, with a higher than average chance of default.

The company also classified Egypt at CA level for fiscal strength, which reflects weak public finances with a high, albeit declining, government debt burden and weak debt affordability at BA level, which refers to susceptibility to risk, both political risks and persisting security risks in certain areas, as well as banking sector risk, reflecting the relatively large size of the system and the potential for contingent liabilities accruing to the government's balance sheet, mitigated by the sector's stable funding structure, large liquidity buffers and resilient deposit growth performance.

The previous Moody’s credit rating for Egypt was B2 released in September 2019, which was the same rate as April 2019, when Moody’s upgraded Egypt’s credit rating from B3 to B2.

Moody’s said that ongoing fiscal and economic reforms will support gradual but steady improvement in Egypt's fiscal metrics and raise real GDP growth. Yet it said the decision to keep Egypt's credit profile at B2 reflects concerns over weaknesses in Egypt’s credit profile.
?
There are no comments on this article.

Leave a comment


久久亚洲国产中文字幕