A general view of Cairo skyline during sunset, with foggy cold weather around the country, Cairo, Egypt February 2, 2023.
REUTERS/Amr Abdallah Dalsh/File Photo Acquire Licensing RightsOct 5 (Reuters) - Moody's on Thursday downgraded Egypt's credit rating by a notch to 'Caa1' from 'B3', citing the country's worsening debt affordability.
Egypt has been facing an economic crisis with record inflation and a chronic foreign currency shortage, and a borrowing spree over the last eight years has made external debt repayments increasingly onerous.
"Moody's expects the materialization of asset sale proceeds at the central bank to help restore the economy's foreign currency liquidity buffer," the credit rating agency said, placing Egypt's outlook at 'stable'.
Egypt has imposed import restrictions to remedy the shortage of foreign currency, while at least two national banks have suspended the use of Egyptian pound debit cards outside the country to stop a drain on foreign currency.
Persons:
Amr Abdallah Dalsh, Moody's, Sri Hari, Shinjini
Organizations:
REUTERS, International Monetary Fund, Sri, Thomson
Locations:
Cairo, Egypt, Bengaluru