Posted 10/20/2023, 8:46:00 PM
S&P Downgrades Egypt's Credit Rating Due to Economic Crisis and Delayed Reforms
- S&P downgraded Egypt's long-term credit rating by one notch to "B-" due to mounting funding pressures
- Egypt is battling an economic crisis with currency devaluations, high inflation, and people seeking risky routes out
- S&P cites delays to implementing reforms as a factor in the downgrade
- Inflation is eating into purchasing power and weakening the Egyptian pound
- S&P expects GDP growth to further slow in 2024 due to the foreign currency crunch
- Moody's also recently downgraded Egypt's credit rating due to worsening debt affordability