Moody’s says completed Egypt’s periodic review

Moody’s financial services company announced on Tuesday it has completed the periodic review of a group of issuers that includes Egypt and may include related ratings, with no changes in Egypt’s credit rating that is stable at B2, according to a statement issued by Moody’s late on Monday.

“The credit profile of Egypt (issuer rating B2) is supported by high economic strength, reflecting the country’s large and diversified economy with robust growth prospects,” according to the statement.

It added that low institutional strength balances are relatively weak, but there have been improving governance indicators with a solid track record of reform implementation over the past three years.

On the other hand, low financial strength reflects weak public finances with a high, albeit declining, government debt burden and very low debt affordability.

Furthermore, moderate variability to event risk reflects political risks, balancing a lower likelihood of social disorder with persisting security risks in certain areas, as well as banking sector risks reflecting the relatively large size of the system and the potential for contingent liabilities accruing to the government’s balance sheet, alleviated by the sector’s stable funding structure, large liquidity buffers and resilient loan performance.

Source: Ahram Online