S&P Global affirms Egypt’s sovereign credit rating at B; outlook stable

S&P Global Ratings (previously Standard & Poor’s) affirmed on Friday its ‘B/B’ long- and short-term foreign and local currency sovereign credit ratings on Egypt with a stable outlook.

“We expect Egypt’s foreign exchange reserves and access to domestic and external debt markets will allow it to cover higher external financing needs and upcoming maturities,” the international credit rating agency said in a recent report.

“Moreover, we see strong medium-term growth prospects for Egypt, barring the pandemic’s near-term impact, underpinned by the ongoing implementation of fiscal and economic reforms.”

The gross domestic product (GDP) growth will start to rebound from 2022 onward, according to S&P Global.

Egypt’s GDP growth is forecast to slow to 2.5 percent in fiscal year (FY) 2020/2021, compared to 3.6% in FY19/20 “as the impact of the pandemic is felt more fully.”

The economic growth is expected to average 5.3 percent from FY21/22 to FY23/24.

The Minister of Finance, Mohamed Maait, said that affirming Egypt’s sovereign credit rating for the third time in a row since the pandemic reflects the country’s resilience in responding to the crisis.