{"id":668682,"date":"2025-07-20T00:00:00","date_gmt":"2025-07-20T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2025\/07\/20\/moodys-keeps-our-rating-unchanged-but-sees-signs-of-improvement-ahead\/"},"modified":"2025-07-20T00:00:00","modified_gmt":"2025-07-20T00:00:00","slug":"moodys-keeps-our-rating-unchanged-but-sees-signs-of-improvement-ahead","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2025\/07\/20\/moodys-keeps-our-rating-unchanged-but-sees-signs-of-improvement-ahead\/","title":{"rendered":"Moody\u2019s keeps our rating unchanged, but sees signs of improvement ahead"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong>Moody\u2019s <\/strong><strong>kept Egypt\u2019s outlook positive and affirmed its Caa1 rating <\/strong>\u2014 seven rungs into junk territory \u2014 the credit rating agency wrote. The agency said its positive outlook \u201creflects the prospect for an easing of Egypt's debt service burden. Increasing monetary policy credibility and effectiveness.\u201d<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">(<strong>Tap or click the headline above to read this story with all of the links <\/strong>to our background as well as external sources.)<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>REMEMBER- <\/strong>In March of last year, shortly after the float of the EGP, <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/8b7ded3a-e188-4a20-a95c-54d7ae389ddc\/moody%25e2%2580%2599s-upgrades-egypt%25e2%2580%2599s-outlook-to-positive\" style=\"\" rel=\"noopener\">Moody\u2019s upgraded<\/a> Egypt\u2019s outlook to positive from negative and affirmed its Caa1 rating. The agency cited the USD 35 bn Ras El Hekma investment and policy measures taken by the central bank for its decision.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>It could go either way: <\/strong>\u201cThe ongoing fiscal adjustment and structural reforms raise the prospect of a medium-term improvement in fiscal metrics and higher potential growth. However, geopolitical disruptions and social pressures could challenge the policy adjustment,\u201d Moody\u2019s said.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Still a long way to go: <\/strong>Moody\u2019s flagged continued risks from high debt (89% of GDP), low revenue (19% of GDP), and a still-wide current account deficit (6% of GDP). Structural rigidities, the outsized role of the public sector, and vulnerability to geopolitical or social pressures could also slow down reform momentum.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>A possibility for an upgrade: <\/strong>Moody\u2019s indicated that the rating could improve if there is sustained improvement in debt affordability, driven by structurally higher revenue and lower borrowing costs. Continued adherence to a flexible exchange rate regime and preservation of FX buffers would also support a stronger credit rating over time. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>\u2026Or a downgrade: <\/strong>However, the agency warned that downward pressure could materialize if macroeconomic reforms stall, debt affordability deteriorates further, or FX buffers come under renewed stress due to capital outflows or external shocks.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The agency sees potential for improvement as inflation eases and fiscal consolidation progresses<\/p>\n","protected":false},"author":1,"featured_media":668683,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","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":[7206],"tags":[104,72,1324],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-668682","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-economy","tag-enterpriseam","tag-moodys","wpautop","entry"],"acf":{"mongo_id":"502989e1-3a37-4725-8f7c-42a3e46fa956","order":"10","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2025\/5\/1389.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Moody\u2019s keeps Egypt\u2019s rating unchanged, but sees signs of improvement ahead","related_issue":[668664],"teaser":"The agency sees potential for improvement as inflation eases and fiscal consolidation progresses","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2025\/7\/.fb697574-7ab6-424f-8f99-769ae7e076ab.mp3"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Moody\u2019s keeps our rating unchanged, but sees signs of improvement ahead - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2025\/07\/20\/moodys-keeps-our-rating-unchanged-but-sees-signs-of-improvement-ahead\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta 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Public finances to continue improving: Moody\u2019s expects the government\u2019s fiscal deficits to continue narrowing\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\/2019\/8\/2469.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":668682,"position":3},"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":571437,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/05\/12\/moodys-affirms-egypts-credit-rating-at-b2-outlook-stable\/","url_meta":{"origin":668682,"position":4},"title":"Moody\u2019s affirms Egypt\u2019s credit rating at B2, outlook stable","author":"enterpriseam admin","date":"12 May 2020","format":false,"excerpt":"Moody\u2019s affirms Egypt\u2019s credit rating at B2 with a stable outlook, citing effective policy and capacity to manage shocks: Moody\u2019s has maintained Egypt\u2019s long-term foreign and local currency issuer default rating at B2 with a stable outlook due to \u201congoing credit strengths and challenges\u201d that it says are unlikely to\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\/5\/116.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":641388,"url":"https:\/\/enterpriseam.com\/egypt\/2017\/09\/20\/641388\/","url_meta":{"origin":668682,"position":5},"title":"Moody\u2019s obstinance on credit rating\u2026","author":"enterpriseam admin","date":"20 September 2017","format":false,"excerpt":"Moody\u2019s obstinance on credit rating continues: \u201cEgypt's B3 stable credit profile reflects its large and diversified economy and strong reform momentum, set against constraints which include its very weak government finances,\u201d Moody's said in an annual report yesterday. The credit agency insists that its rating on Egypt strikes the right\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":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/668682","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=668682"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/668682\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/668664"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/668683"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=668682"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=668682"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=668682"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=668682"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=668682"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}