Standard & Poors
Standard & Poor's credit rating agency revealed two scenarios that, if they occur, would lead to the upgrade or downgrade of Egypt's credit rating in the upcoming period, according to a report published on its website.
"Changing the outlook from negative to stable reflects structural reforms that the Egyptian government undertook recently which contributed to achieving financial discipline,” explained Minister of Finance Mohamed Maait
Standard and Poor’s (S&P) has maintained Egypt's foreign and local currency credit ratings at B level with a “stable outlook" for the second time in three months.
This shows trust that the Egyptian economy has the ability to deal positively with difficult foreign repercussions, topped by the war in Europe and its economic fallout at the international level.
Standard & Poor's (S&P) kept Saturday Egypt's long and short-term foreign and local currency sovereign credit ratings at B/B with a stable outlook.
S&P expected that Egypt’s accession to the index would contribute to achieving one of the Egyptian government’s debt management strategy objectives, which is to reduce the cost of financing, in addition to activating the stock market to increase its levels of liquidity, and enhance the demand for government debt instruments, which would reduce its cost through the decline in the return required by investors.
Maait noted that this affirmation is an additional testimony of confidence in the strength and diversity of the Egyptian economy.
This comes as Egypt enjoys the highest differential between nominal interest rates and inflation among more than 50 economies followed by Bloomberg, making Egyptian bonds and treasury bills among the preferred instruments among international investors hungry for yield.
