S&P revises Egypt’s outlook to negative on currency depreciation and rising inflation – The National

S&P revises Egypt’s outlook to negative on currency depreciation and rising inflation – The National

S&P Global Ratings has revised Egypt’s outlook to negative on prospects of further currency depreciation, a continued rise in inflation and the possibility of the country’s external financing needs outgrowing its funding sources.

The rating agency affirmed its long and short-term foreign and local currency sovereign credit ratings of Egypt at “B/B”, seven notches above default level and at par with countries such as Uganda.

The Arab world’s third-largest economy's negative outlook underpins risks that the policy measures implemented by authorities may be “insufficient to stabilise the exchange rate” and attract foreign currency inflows, essential for meeting its external financing needs.