CAIRO: Standard & Poor’s Ratings Services announced downgrading its outlook on Egypt’s credit rating to “stable” from “positive” and affirmed its ‘B-/B’ long- and short-term foreign and local currency sovereign credit ratings.
The downgrade reflects the view of US financial services company that “The economic recovery will not outperform our previous expectations, with GDP growth projected at 4.0% on average over the next three years,” Standard & Poor’s said in a press release Friday.
On May 16, Standard & Poor’s has upgraded its outlook on Egypt’s credit rating to positive from stable. The decision came two months after Egypt had hosted the Economic Development Conference at Sharm El-Sheikh.
“Our ratings on Egypt remain constrained by wide fiscal deficits, high domestic debt, low income levels, and institutional and social fragility,” the press release said, notifying that the strong external support that Egypt has received over the past few years could be affected by fiscal pressures in Gulf Cooperation Council (GCC) countries.