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Monday, 30 November 2020

Moody’s announces completion of Egypt's periodic review

Doaa A.Moneim , Tuesday 3 Sep 2019
Moody's main headquarter (Reuters)
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Moody's financial services company has announced that it has completed the periodic review of a group of issuers that includes Egypt and may include related ratings, with no changes in Egypt’s credit rating that is stable at B2, according to a statement issued by Moody’s late on Monday.

“The credit profile of Egypt (issuer rating B2) is supported by high economic strength, reflecting the country's large and diversified economy with robust growth prospects,” according to the statement.

It added that low institutional strength balances are relatively weak, but there have been improving governance indicators with a solid track record of reform implementation over the past three years. On the other hand, low fiscal strength reflects weak public finances with a high, albeit declining, government debt burden and very low debt affordability.

Moody's also said that Egypt is facing political, economic and social troubles which the country has been having difficulty overcoming. Furthermore, the country's banking system also faces risks which can be mitigated by utlising Egypt's potential given the sector's stable funding structure, large liquidity buffers and resilient loan performance.

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