Standard & Poor's, on Friday,lowered Egypt's long-term sovereign rating to "B-" from "B," indicating increasing financing pressures.
Egypt faces economic challenges that have led to a series of currency devaluations and record inflation, with rising costs for basic imports following the Russian-Ukrainian war.
S&P said the downgrade reflects repeated delays in implementing monetary and structural reforms in the country, among other factors.
A Reuters poll showed yesterday, Thursday, that the Egyptian economy will grow more slowly than previously expected, with purchasing power eroding due to inflation and the weakness of the pound.
"Inflationary pressures are likely to remain high as we expect further weakness in the exchange rate," Standard & Poor's said in a statement.
"Due to the foreign currency crisis, we expect GDP growth to slow further in fiscal 2024," Standard & Poor's added, putting the country's outlook at "stable."
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