Moody's Downgrades Egypt's Credit Rating to CAA1 with Stable Outlook

Moody's credit rating agency downgraded Egypt's rating from B3 to CAA1, with a stable outlook.

This is the second time that Moody's has lowered Egypt's credit rating during the current year, having previously lowered in February to B3 from B2.

It is worth noting that Mohamed Maait, Minister of Finance said that Moody’s decision to continue placing Egypt’s sovereign credit rating in local and foreign currencies and the outlook under negative review for an additional three months reflects its balanced view of the recent reform steps and measures taken during the past months, and expresses its understanding of what the economy is facing.

Egypt faces external and internal difficulties and challenges that negatively affect the overall economic indicators, explaining that the Ministry is working to achieve more reforms and structural measures during the coming months to deal with the current challenges facing the Egyptian economy in general and those referred to in the Moody’s report.