Moody's Investors Service has downgraded Egypt's credit outlook from stable to negative, while affirming the long-term foreign debt rating at Caa1. This decision reflects increasing risks of credit weakening due to weak debt metrics, a significant currency plunge, and heightened interest-rate risk. The agency noted that interest payments are expected to absorb two-thirds of government revenue. Egypt's economic crisis has been exacerbated by three devaluations of the pound since March 2022, soaring inflation rates, and external pressures complicating the macroeconomic adjustment process. The country's financial challenges are further stressed by the Suez Canal's fiscal impact, which is a major source of revenue for the government. The canal has faced disruptions, including a recent blockage and the potential influx of 2 million Gazans, which could further strain Egypt's financial stability. Inflation has notably hit 34.2% last month, underscoring the severity of the economic situation.
Egypt's credit outlook has been revised from "stable" to "negative" by ratings agency Moody's, amid a worsening currency and debt crisis. Prices have soared in the Middle East's most populous country, with inflation hitting 34.2% last month https://t.co/vCoWBgD7rp
"A significant increase in interest payments and mounting external pressure have complicated the macroeconomic adjustment process" Egypt's credit outlook has been revised from "stable" to "negative" by ratings agency Moody's https://t.co/NnFV2k9apj
Egypt's credit outlook has been revised from "stable" to "negative" by ratings agency Moody's, amid a worsening currency and debt crisis in the country https://t.co/XFU8cGOx2k
Egypt's credit outlook revised to 'negative', as Red Sea attacks hit Suez Canal revenues https://t.co/NnFV2k9apj https://t.co/vWdIG5Vpzs
Egypt's pound dives on the black market as Moody's cuts debt outlook https://t.co/H3yyMuMzDQ https://t.co/4qb3B82mv5
Moody's on Egypt: - Cut credit outlook from 'stable' to 'negative' - Why? weak debt metrics, currency plunge, interest-rate risk - Interest payments will absorb two-thirds of revenue - Default not Moody's baseline, but "risks have increased” https://t.co/fcoNovw7jQ https://t.co/5DXU0uG7hU
A lot of harm flows from problems with the Suez Canal starting with the fiscal hit to Egypt. Egyptian financial problems run through the story of Britain gaining control of the Suez Canal to the start of the 2011 Arab rebellions and now Egypt is already in a financial crisis. https://t.co/bNeZSTZsVr
Egypt’s credit outlook was cut to negative by Moody’s Investors Service, citing increasing risks that the Middle Eastern nation’s credit will continue to weaken https://t.co/IBmAyd9Qkg
Between the blockage of the Suez Canal and it being the likely recipient of 2 million Gazans, Egypt is really getting the shaft https://t.co/zQkegDlF6q
Between Suez and being the likely recipient of 2 million Gazans, Egypt is really getting the shaft https://t.co/zQkegDlF6q
The Egyptian government gets a large part of its revenues from the Suez Canal. If it can’t afford food and energy subsidies for its enormous population, we could see an Arab Spring, Part 2. https://t.co/OG6h5oUm9Z
Egypt has been grappling with its worst economic crisis in recent history that has seen the devaluation of the pound three times since March 2022 and inflation soaring https://t.co/k0xrek6oYV
#Breaking Moody's: Egypt Outlook to Negative from stable, long-term foreign debt rating was affirmed at Caa1 https://t.co/7r1zPkU6zk