Moody’s affirms Egypt’s credit rating as IMF approves $2.27bn funding facility – The National

Moody’s affirms Egypt’s credit rating as IMF approves $2.27bn funding facility – The National

Moody's affirms Egypt's credit rating as IMF approves $2.27bn funding facility. Moody's Investors Service affirmed Egypt's B2 rating on the resilience of its credit profile as the International Monetary Fund approved $2.77 billion (Dh10.17bn) of emergency funding on Monday to help it cope with the fallout from the Covid-19 pandemic.. The affirmation of the rating and stable outlook reflected Moody's view that the most populous Arab country's credit strength is not expected to change materially, relative to similarly-rated sovereigns, due to the global shock posed by the coronavirus pandemic.. While the pandemic underlines some of Egypt's credit vulnerabilities, "improvements in governance and policy effectiveness in recent years shore up the sovereign's credit profile resilience to the current shock", Moody's said in a statement on Monday.. The pandemic has upended global trade and brought travel and tourism to a halt across continents.. Mr Okamoto said the $2.77bn funding through the IMF's Rapid Financing Instrument, was still needed to "correct large external and domestic imbalances".. The pandemic poses "an immediate and severe economic disruption that could negatively impact Egypt's hard-won macroeconomic stability if not addressed", the IMF said.. The Washington-based lender last month said Egypt's growth rate is set to slow to