S&P praised the strength, flexibility and balance of the policy framework set by the government to deal with the pandemic’s impact
Egypt continues to rake in “B” ratings with a stable outlook from international rating agencies, this time Standard & Poor (S&P) announced it will maintain Egypt’s B rating in local and foreign currencies for the 4th time in a row since the start of the pandemic.
In an official statement, the Minister of Finance, Mohamed Maait, emphasized the decision as additional testimony of the international institution’s confidence in the strength and diversity of the Egyptian economy, and the state’s commitment to economic reform.
Fitch Ratings recently announced that it was keeping Egypt’s B+ rating as well, as “continued economic growth and a modest coronavirus support package limit the pandemic’s impact on Egypt’s public finances.”
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S&P praised the strength, flexibility and balance of the policy framework set by the government to deal with the pandemic’s impact, along with the implementation of economic, financial and structural reforms, Maait pointed out.
These supported the country by providing a strong and diversified domestic financing base in Egypt, and a high foreign exchange reserve balance, in a way that improves the competitiveness of exports.
The minister added that the Standard & Poor's decision is a continuous consolidation of the balance of confidence among investors and international institutions due to the economic and financial reforms implemented during the past years, which gave sufficient flexibility to the Egyptian economy, enabling it to finance its needs in both local and foreign currencies despite the continuing outbreak of COVID-19 and its negative repercussions on the global economy and the economies of the region.
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He said that the decision comes at a time when the Egyptian economy achieved a real growth rate of about 3.3 percent during 2020/2021, which is one of the highest rates of economic growth achieved in the region despite the continuation of the Corona pandemic and its negative repercussions.
