Moody’s Investors Services has put Egypt's B3 long-term foreign-currency and local-currency issuer ratings under review for downgrade, according to a recent statement.

The credit ratings agency has also placed the country’s B3 foreign currency senior unsecured ratings and its (P)B3 foreign currency senior unsecured MTN program rating on review for downgrade.

Moreover, the Egyptian Financial Corporation's (P)B3 senior unsecured MTN program rating for the Sovereign Taskeek sukuk company and its B3 senior unsecured rating were are placed on review for downgrade.

The review for downgrade indicates the sovereign growing liquidity and debt affordability risks, Moody’s noted.

The review period will center on the government's ability to complete the intended $2 billion in asset sales required to meet the International Monetary Fund (IMF) program's financing targets for fiscal year (FY) 2022/2023 (ending June) and illustrate the viability of the program's external funding strategy, which heavily relies on asset sales.

It will also concentrate on the authorities' capacity to increase net international reserves in accordance with quantitative IMF program objectives over a three-month period and sustain currency confidence.

It is worth noting that Egypt’s ratings were B3 prior to the rating action, with stable outlook.

 

Copyright © 2022 Arab Finance Brokerage Company All rights reserved. Provided by SyndiGate Media Inc. (Syndigate.info).