Fitch Downgrades Egypt's Credit Rating on Rising Debt and Import Costs
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Fitch downgraded Egypt's long-term foreign currency rating to 'B-' from 'B' due to increased financial risks and higher government debt.
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Recovery in Egypt's tourism industry has been offset by surge in energy prices and rising global borrowing costs, adding to its external debt.
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Fitch expects Egypt to face a significant rise in external debt maturities in coming fiscal years.
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Egypt relies heavily on imports of wheat, other foods and fuel, putting pressure on foreign currency reserves.
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Fitch revised its outlook to 'stable' from 'negative' expecting reforms and slower megaproject spending after elections.