Global ratings giant Moody's has downgraded Egypt's outlook from stable to negative, citing growing concerns about the country's credit profile, as per a recent statement. Moody's emphasizes that a substantial rise in interest payments, coupled with increasing external pressures, has complicated Egypt's macroeconomic adjustment process. The agency underscores the possibility that policy actions and external support may fall short in averting a debt restructuring scenario. The agency underscores the importance of Egypt's fiscal reform implementation in potentially unlocking further assistance to address the mounting economic challenges. In October, Moody’s Investors Services lowered Egypt’s long-term foreign- and local-currency issuer ratings to Caa1 from B3.

Source: The North Africa Journal January 21, 2024 13:32 UTC