S&P upbeat on Egypt rating after $35bn UAE deal

S&P upbeat on Egypt rating after $35bn UAE deal

Image credit: WAM S&P Global Ratings says it has been encouraged by the rush of financial support Egypt has seen in the last two weeks, including a $35bn UAE investment to develop the Ras al-Hikma peninsula on its Mediterranean coast and an $8bn International Monetary Fund (IMF) deal. Egypt reforms Since securing the deal with the Emirati sovereign fund ADQ two weeks ago, the North African country has launched some long-sought reforms: The central bank this week delivered a 600 basis-point interest rate hike and pledged to unshackle its currency alongside a devaluation, while the government secured an enhanced deal with the IMF. “We had an expectation that the exchange rate adjustment was imminent and that the IMF would move forward with its existing programme, and potentially expand that,” said Trevor Cullinan, director, sovereign ratings at S&P Global Ratings in Dubai. “What we were not expecting was the whole Ras al-Hikma inflow from ADQ, which is obviously a really big number.” Back in October, S&P had downgraded Egypt’s credit rating to B- with a stable outlook – a status usually indicating that a change in direction of travel for its rating was not on the cards. Upcoming