{"id":628729,"date":"2018-05-13T04:18:55","date_gmt":"2018-05-13T04:18:55","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2018\/05\/13\/sp-finally-raises-egypts-sovereign-credit-rating-to-b-from-b\/"},"modified":"2018-05-13T04:18:55","modified_gmt":"2018-05-13T04:18:55","slug":"sp-finally-raises-egypts-sovereign-credit-rating-to-b-from-b","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2018\/05\/13\/sp-finally-raises-egypts-sovereign-credit-rating-to-b-from-b\/","title":{"rendered":"S&#038;P finally raises Egypt\u2019s sovereign credit rating to \u2018B\u2019 from \u2018B-\u2019"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-01\"><\/a> <strong>The S&P has finally come around and raised Egypt\u2019s sovereign credit rating to \u2018B\u2019 from \u2018B-\u2019:<\/strong> S&P Global Ratings raised its long-term foreign and local currency sovereign credit ratings on Egypt to 'B' from 'B-\u2019, with a stable outlook. \u201cThe stable outlook balances Egypt's falling current account deficit, decreasing inflation levels, and stronger growth prospects against risks from still-high fiscal deficits and a high stock of relatively short-dated government debt issued at high interest rates,\u201d the ratings agency said in <a href=\"https:\/\/www.standardandpoors.com\/en_US\/web\/guest\/login?bmctx=80942C62C14C035783E5604661B8A43D2C46C3EFB8CED785E69D88F2D6301989&contextType=external&username=string&enablePersistentLogin=true&OverrideRetryLimit=0&contextValue=%2Foam&password=secure_string&challenge_url=https%3A%2F%2Fwww.standardandpoors.com%2Fen_US%2Fweb%2Fguest%2Flogin&request_id=4177451125695002595&authn_try_count=0&locale=en_US&resource_url=https%253A%252F%252Fwww.standardandpoors.com%252Fen_US%252Fc%252Fportal%252Flogin%253Fredirect%253D%25252Fen_US%25252Fweb%25252Fguest%25252Farticle%25252F-%25252Fview%25252Ftype%25252FHTML%25252Fid%25252F2036938\">a statement (paywall)<\/a>. S&P forecasts GDP growth will reach 5.2% in FY2017-18 and is upping its expectation for growth over the next four years to 5.4% from 4.4%.<\/p>\n<p><strong>Rating hike underpinned by economic reforms:<\/strong> S&P sees that economic and fiscal reforms will underpin rising business confidence and sustain capital inflows. One of its key assumptions is that these inflows will lead to an increase in FX reserves, even as a large portion of the fiscal deficit will be financed through external borrowing. \u201cIn net terms, we project the key source of financing for the current account deficit will be net foreign direct investment averaging close to 3% of GDP per year over our outlook horizon.\u201d The outfit sees Egypt experiencing a more broad-based recovery and a slight move away from a consumption-driven economy toward an increasing contribution from investment and net exports.<\/p>\n<p><strong>Upside risk: <\/strong>\u201cWe could consider a positive rating action if Egypt's growth significantly outperforms our forecasts, if larger-than-anticipated improvements in the current account position sharply reduce Egypt's external financing requirements and external debt levels, and if Egypt's reform program successfully lowers government debt.\u201d<\/p>\n<p><strong>Downside risk: higher borrowing costs and insecurity:<\/strong> \u201cNegative pressure on the rating could arise if Egypt's plan to gradually reduce government debt to GDP is derailed by fiscal slippages, higher borrowing costs, or more pronounced currency depreciation than expected, or if foreign exchange reserve levels were to fall significantly. We could also see negative pressure on the rating if the security environment worsens, hindering the recovery in investment and tourism.\u201d<\/p>\n<p><strong>The ratings boost is a testament to the success of the economic reform measures<\/strong> and in the confidence investors have shown towards the Egyptian economy, Finance Minister Amr El Garhy <a href=\"http:\/\/www.mof.gov.eg\/Arabic\/MOFNews\/Media\/Pages\/releas-a-10-5-18.aspx\">said in a statement on Friday<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The S&#038;P has finally come around and raised Egypt\u2019s sovereign credit rating to \u2018B\u2019 from \u2018B-\u2019: S&#038;P Global Ratings raised its long-term foreign and local currency sovereign credit ratings on Egypt to 'B' from 'B-\u2019, with a stable outlook. \u201cThe stable outlook balances Egypt's falling current account deficit, decreasing inflation levels, and stronger growth prospects [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8572],"tags":[72,2380],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-628729","post","type-post","status-publish","format-standard","hentry","category-speed-round","tag-enterpriseam","tag-speed-round","wpautop","entry"],"acf":{"mongo_id":"f5c70abd-3254-407a-98a9-64e9c9d8643a","order":"0","is_powered_by":true,"story_type":"1","photo_url":"","photo_position":"above","related_issue":[628719],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - 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S&P expects fiscal challenges to remain under control\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":570873,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/04\/21\/sp-affirms-egypts-sovereign-credit-rating-at-b-outlook-at-stable-despite-covid-19-crisis\/","url_meta":{"origin":628729,"position":1},"title":"S&#038;P affirms Egypt\u2019s sovereign credit rating at B, outlook at stable, despite covid-19 crisis","author":"enterpriseam admin","date":"21 April 2020","format":false,"excerpt":"S&P maintains Egypt\u2019s B credit rating with stable outlook despite covid-19 crisis: S&P Global Ratings has maintained Egypt\u2019s B credit rating and its outlook at stable despite forecasting a \u201csharp decline\u201d in economic activity due to the covid-19 pandemic. \u201cThe stable outlook reflects our expectation that the fall in Egypt\u2019s\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/4\/164.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":586887,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/05\/18\/fitch-downgrades-credit-ratings-of-four-local-banks\/","url_meta":{"origin":628729,"position":2},"title":"Fitch downgrades credit ratings of four local banks","author":"enterpriseam admin","date":"18 May 2023","format":false,"excerpt":"The banks now have a rating of B, down from B+","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2023\/5\/1032.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":576024,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/11\/08\/sp-affirms-egypts-b-credit-rating-outlook-at-stable\/","url_meta":{"origin":628729,"position":3},"title":"S&#038;P affirms Egypt\u2019s B credit rating, outlook at stable","author":"enterpriseam admin","date":"8 November 2020","format":false,"excerpt":"S&P Global Ratings has affirmed Egypt\u2019s B sovereign credit rating with a stable outlook, despite elevated external risks from covid-19, according to a research note over the weekend, leaving its ratings largely unchanged since April. S&P\u2019s outlook rests on the expectation that \u201cthe weakening of external and government debt metrics\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/11\/79.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":647532,"url":"https:\/\/enterpriseam.com\/egypt\/2017\/05\/14\/sp-affirms-egypts-b-b-ratings-stable-outlook\/","url_meta":{"origin":628729,"position":4},"title":"S&#038;P affirms Egypt\u2019s \u201cB-\/B\u201d ratings, stable outlook","author":"enterpriseam admin","date":"14 May 2017","format":false,"excerpt":"Standard & Poor\u2019s affirmed Egypt\u2019s long-term and short-term sovereign credit ratings at B- and B, respectively, with a stable outlook, the ratings agency announced on Friday (paywall). Egypt\u2019s ratings \u201cremain constrained by wide fiscal deficits, high public debt, low income levels, and institutional and social fragility.\u201d (This from the people\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":585854,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/05\/01\/sp-lowers-credit-outlook-on-nbe-banque-misr-cib-to-negative\/","url_meta":{"origin":628729,"position":5},"title":"S&#038;P lowers credit outlook on NBE, Banque Misr + CIB to negative","author":"enterpriseam admin","date":"1 May 2023","format":false,"excerpt":"Welcome to the sovereign ceiling\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/wp-content\/uploads\/2023\/05\/National-Bank-of-Egypt3-1920px.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/628729","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=628729"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/628729\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/628719"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=628729"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=628729"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=628729"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=628729"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=628729"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}