S&P Global Ratings in April lowered its outlook on Egypt to negative and forecast a further currency deprecation, while Moody’s Investors Service warned last week of rising risks for the government’s “debt affordability and debt-sustainability profile.”
Those changes are key to unlocking billions of dollars in additional aid, largely from Gulf Arab states. “I reaffirm to you, the Egypt state has not and will not fail to pay back any of its international obligations,” he said, adding that the government fully factors these commitments into its plans. A key component in Egypt’s latest reform program is the sale of state-held stakes in local companies. Authorities in February revealed a list of 32 firms to be offered to investors, either through additional stakes or sales on the Egyptian stock market.