Moody's confirmed Egypt’s credit rating at B2, giving it a stable outlook. This rating, according to the agency, reflects the credit strengths that are not expected to change radically compared to countries that scored a similar rating under the pressure of negative economic repercussions resulting from the outbreak of the Corona virus.
The agency revealed that the measures taken by the Egyptian government in terms of governance and the effectiveness of monetary policies in recent years helped to support Egypt's sovereign credit in facing the challenges posed by the current crisis of the "Corona" outbreak. Moody's precluded that the effects of the Coronavirus would have severe negative effects on Egypt as expected for other global financial markets, thanks to Egypt's record of economic and financial reforms and its demonstration of its ability to overcome similar shocks.
The agency indicated that Egypt is currently enjoying a large-scale domestic financing base and a strong foreign exchange reserve, which gives it strong immunity to potential capital exit from emerging markets in the wake of the shock caused by the Corona pandemic globally. It also stated that the economic shock caused by "Corona" will not undermine the gradual decline recorded in the debt burdens of the Egyptian government, while cash and external positions are likely to remain unchanged.
Source (Al-Sharq Al-Awsat newspaper, Edited)
