Fitch Ratings downgraded Egypt's rating to "B-" down from "B" with a stable outlook, with a sign of increased risks to external financing and a rise in government debt.
The reduction reflects increased risks to Egypt's external finances, macroeconomic stability, and an already high trajectory of government debt. Egypt's main tourism sector, which has been hit hard by the coronavirus pandemic, has recovered, but this has been offset by a sharp rise in energy prices last year and a continued rise in global borrowing costs. This has led to an increase in the country's external loans, which quadrupled to more than $160 billion in the seven years to 2022.
Fitch expects tourism revenues, the Suez Canal, and a recovery in remittances to help contain larger import financing needs.
Source (SkyNews Arabia Website, Edited)
