Moody's credit rating agency revealed that the credit reality in Egypt reflects the ability to adapt to financing shocks, supported by domestic and foreign liquidity reserves, indicating that the stability of expectations reflects the diversification and strength of the economy, while the low levels of foreign currency-denominated debt and the low domestic costs of borrowing are also a positive thing.
Moody's kept Egypt's sovereign credit rating at B2 with a stable outlook, despite the Coronavirus crisis. Indicating that granting Egypt a B2 credit rating with a stable outlook reflects Egypt's large and diversified economy, the large domestic financing base, and the expected foreign exchange reserves that are sufficient to cover due external obligations over the next three years.
According to Moody's, the relatively low levels of external government debt denominated in foreign currency support the Egyptian credit position, indicating that these credit expectations reflect the resilience of the Egyptian credit sector in the face of financing shocks, which is positive for the credit file, and this is what is driven by effective government policies and credibility. Revealing that the main weakness that Egypt suffers from in the field of credit is it's very huge need for government funding, which ranges between 30% and 40% of the GDP annually.
Source (Youm7 Newspaper-Egypt, Edited)
