The two banks issued these recommendations after an assessment of Egypt's economy and potential credit rating reduction concluded that the possibility of Egypt defaulting on its debts was unfounded. They even went as far as anticipating strong performance for investors in Egypt's USD bonds. 

"The likelihood of Egypt defaulting on its debts is lower than what is estimated by the market," stated Kamakshya Trivedi, head of Goldman Sachs' global foreign exchange department.

Similarly, Mary-Therese Barton, chief investment officer for fixed income at Pictet, expressed confidence that no emerging markets would default in 2024.

The enthusiastic endorsement by the two banks for Egypt's USD bonds comes after some international rating agencies reduced Egypt's credit rating.

Despite its recent affirmation of the country's Caa1 long-term foreign and local currency issuer ratings, Moody's revised its future outlook for Egypt to negative, citing increasing risks to the country's credit profile due to challenging macroeconomic conditions and exchange rate adjustments.

Meanwhile, Fitch downgraded Egypt's long-term foreign currency issuer default rating (IDR) from B to B- in November 2023, with a stable outlook.

Moreover, S&P Global downgraded Egypt's long-term sovereign credit rating in local and foreign currencies to B- from B in October, maintaining a stable outlook.