Thu, 03 Sep 2020 - 11:23 GMT
Moody's - REUTERS
CAIRO - 3 September 2020: Prime Minister Moustafa Madbouli asserted that the trust of Moody's Corporation in the performance of the Egyptian economy reflects the efficiency of the measures adopted by the government to promote growth rates and overcome challenges posed by the global coronavirus crisis.
His remarks came while reviewing a Moody's Investors Service report issued at the end of August, shedding light on the positive indexes of the Egyptian economy.
The report has said that Egypt's (B2 stable) credit profile reflects its sizable and diversified economy, large domestic funding base, and projected foreign exchange reserves that are enough to cover maturing external liabilities over the next three years.
It added that relatively low levels of foreign currency-denominated and external government debt also support Egypt's credit profile.
It said as well that declining inflation and credible monetary policies have also allowed the central bank to cut interest rates, which has contributed towards the gradual decline of governmental domestic borrowing costs.
Moody’s expects that a significant improvement in debt affordability and reduced gross financing needs would see the rating being upgraded. Evidence of sustained improvement in the labor market and in non-hydrocarbon exports would also be a positive change, it said.