Fitch downgraded Egypt’s rating to ‘B’ from ‘B+’, while changing its outlook to ‘negative’, indicating that it may further downgrade in the coming months due to economic problems in the country.
And the credit rating agency, in a statement, spoke of an increase in external financing risks in light of high financing needs and tightening conditions for external financing, and the statement says that “all this is happening against the backdrop of a state of extreme uncertainty.” in the course of exchange rates and the decline in external liquidity reserves”.
And pointed out that the occurrence of “a further delay in the transition to a policy of flexible exchange rates, will lead to a further deterioration in confidence, and may also lead to a delay in the implementation of the program of the International Monetary Fund.”
And credit ratings agency Standard & Poor’s announced in late April that it had revised its assessment of the degree of prospects for Egyptian debt from “stable” to “negative” due to the “heavy external financing needs” it expects for public finances.
According to Agence France Presse, Egypt is experiencing one of the worst economic crises in its history. In one year, the Egyptian pound has lost half its value against the US dollar, and the country’s foreign exchange reserves have dwindled.
Source: AFP.