Fitch downgraded Egypt’s rating from “B+” to “B”, while converting its outlook to negative, indicating that it may downgrade the rating further in the coming months due to the country’s economic problems.
And the credit rating agency spoke in a statement about the increase in external financing risks in light of the high financing needs and the tightening of external financing conditions, and said in a statement that “all of this comes against the backdrop of a state of extreme uncertainty in the path of exchange rates and the decline in external liquidity reserves.”
And she pointed out that the occurrence of “further delay in the transition to the policy of flexible exchange rates, will lead to a further deterioration in confidence and may also lead to a delay in the implementation of the International Monetary Fund program.”
And the credit rating agency “Standard & Poor’s” announced in late April that it had reconsidered its estimates of the degree of Egyptian debt prospects from “stable” to “negative” due to the “large needs for external financing” that it expects regarding public finances.
According to the agency, “Agence France Presse,” Egypt is witnessing one of the worst economic crises in its history. In one year, the Egyptian pound lost half its value against the US dollar while the country’s foreign exchange reserves declined.
This article was originally published by RT.
