Global rating agency Fitch has downgraded Egypt's outlook to 'B' from 'B+'. According to Fitch’s Primary Rating analyst, Laure de Nervo, the main factors contributing to the downgrade include the country's rising external financing risk due to financing requirements and its constrained external financing conditions. "We see a risk that a further delayed transition to a flexible exchange rate will further undermine confidence, and, potentially, delay the IMF programme," the Fitch statement said. The rating agency assumes that the exchange rate will depreciate further before stabilising in the financial year ending June 2024. Last month, S&P Global Ratings lowered its outlook on Egypt to negative and forecast a further currency deprecation.

Source: The North Africa Journal May 06, 2023 05:41 UTC