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Moody’s downgrades Egypt’s rating to Caa1 with stable outlook

The Moody’s credit ratings agency on Thursday lowered Egypt’s rating from B3 to Caa1, with a stable outlook.

Moody’s attributed the downgrade to the deterioration of the country’s ability to bear debt and the ongoing shortage of foreign currencies.

And the stable outlook is due to Egypt’s continued access to financial support from the International Monetary Fund under an arrangement worth US$3 billion over a period of 46 months, according to Reuters.

The agency also downgraded Egypt’s senior unsecured foreign currency ratings to CCA1 from B3.

The agency expected that the sale of assets would go ahead in the Central Bank of Egypt to help restore the Egyptian economy’s hard currency liquidity reserve.

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