Moody's switches Egypt view to positive

Moody's Ratings said it changed the outlook on the government of Egypt to positive from negative and affirmed the Caa1 long-term foreign- and local-currency issuer ratings. The agency concurrently affirmed Egypt's foreign-currency senior unsecured ratings at Caa1, and its foreign-currency senior unsecured medium-term note program rating at (P)Caa1.

Additionally, Moody’s also revised the outlook to positive from stable and affirmed the backed senior unsecured ratings of the Egyptian Financial Co. for Sovereign Taskeek sukuk company at Caa1 and its program rating at (P)Caa1 which are, in Moody's view, ultimately the obligation of the Government of Egypt.

“The change in Egypt's outlook to positive reflects significant official and bilateral support announced and marked policy steps taken in the past week that will, if maintained, support macroeconomic rebalancing. The very large front-loaded foreign direct investment contribution by the government of United Arab Emirates (Aa2 stable) significantly bolsters the economy's foreign exchange reserves to broadly cover Moody's estimated external financing gap until fiscal 2026 (ending in June 2026). As a result, the downside risks that prompted the change in outlook to negative in January are significantly reduced,” the agency said in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.