Fitch Ratings, one of the ‘Big Three’ credit rating agencies, downgraded Egypt’s sovereign credit rating – an assessment of a country’s ability to meet its foreign currency obligations – from B+ to B for the first time in a decade. Fitch’s decision, announced on 5 May, reflects the agency’s pessimistic outlook on the Egyptian economy. Credit rating agencies are companies that rate a state’s ability to pay back its debts and assess its risk of default – affecting the debtor’s chance of receiving loans or investments, which implicitly indicates how much interest they should offer to entice lenders. Fitch’s rating downgrade follows those of Standard & Poor (S&P), and Moody’s, the other members of the ‘Big Three’. Finance Minister, Mohamed Maait, accused the Big Three of being biased against Egypt during a live interview with TV presenter Amr Adeeb on 6 May. “There is prejudice [against Egypt],” Maait said, adding that a single day could see eight new economic reports on Egypt. Fitch’s rating downgrade, arriving seven months after changing its outlook on Egypt from ‘stable’ to ‘negative’, indicates its concerns about the country’s growing foreign currency problems and its…
Egypt Faces First Fitch Downgrade in a Decade as Economic Struggle Continues
May 7, 2023
