Moody’s affirms Egypt’s B2 credit rating with stable outlook

Ratings agency Moody’s has kept on Saturday Egypt’s credit rating at B2 with a stable outlook.

The credit profile of Egypt (issuer rating B2) is supported by A3 economic strength, a report by the rating agency showed.

A3 is the seventh highest rating a debt issuer can get, and this indicates that Egypt’s financial and banking system is solid with a low risk of default.

The rating also shows the country’s large and diversified economy with robust growth prospects. However, Moody’s classified Egypt with B1 for institutions and governance strength balances, saying that they are relatively weak but improving, with important progress on fiscal and economic reforms.

The B1 rating refers that the issuer is relatively risky, with a higher than average chance of default.

In September last year, Moody’s credit rating for Egypt was B2, the same rate as April 2019, when the agency upgraded Egypt’s credit rating from B3 to B2.

The ongoing fiscal and economic reforms will support gradual but steady improvement in Egypt’s fiscal metrics and raise real GDP growth, Moody’s said.