Moody's Investor Service maintained Egypt's long-term and senior unsecured bond rating at B3, a highly speculative non-investment grade, as government finances remain weak and the impact of the country's reform program remains unclear. The rating agency also affirmed its stable outlook on the country's main credit rating.
"The rating affirmation is based on Moody's view that the B3 rating appropriately captures Egypt's credit risk profile. Very weak government finances will continue to constrain the rating pending further clarity on the sustainability and impact of the reform programme," the rating agency said.
"While Egypt's external liquidity position has significantly improved over the past 12 months, the increase in international reserves has been mainly driven by debt-creating inflows, thus also raising the level of external debt and foreign-currency denominated debt.
Egypt in November unlocked a $12 billion International Monetary Fund loan by devaluing its currency and reducing energy subsidies. While the move help attract capital flows into the country and net international reserves rose by $4.7bn to a record $36.04bn last month, the economy has struggled under price inflation not seen in decades. The rate of inflation soared to a 31-year high last month as a spate of subsidy cuts lifted the price of goods and services. That led to a slowdown in spending as the price of goods and services sky rocketed.
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Read more:
Egypt's rate of inflation rises to high not seen since 1986 amid energy subsidy cuts
Egypt's PMI rises in July by exports, bring a halt to 21 month decline in orders
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The probability of another uprising in Egypt following years of political turmoil was unlikely, the agency said, adding that for the country to see an improvement in its credit rating the pace of the reform program needs to accelerate.
"Faster-than-currently expected progress under the reform programme would be credit positive. In particular, more rapid fiscal consolidation and improvements in debt metrics, while preserving social stability, would be a key driver for a potential positive rating action," Moody's said in its report.
"In addition, early signs of successful implementation of structural economic reforms would include rising FDI inflows, increasing exports in higher value-added goods, and a meaningful reduction in unemployment."
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Name: Kumulus Water
Started: 2021
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How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
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Stars: Basel Adra, Yuval Abraham
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Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
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Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
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On sale: Later in 2025 or early 2026, depending on region
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Ms Yang's top tips for parents new to the UAE
- Join parent networks
- Look beyond school fees
- Keep an open mind
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
