Arab FinanceS & P Global Credit Classification has decided to install Egypt's “B-/B” classification with a degree with modification of its future outlook from positive to stable.
The agency said that these stable expectations are a balance between Egypt's commitment to financial and economic reforms and its impact on the decrease in global growth, and the possibility of fluctuating external financing conditions.
She also added that the steps related to the recently taken American customs duties caused great fluctuations in the global markets. Given the double financial and external deficit of Egypt, the high total borrowing requirements, and the high cost of its debts, the new global shock prompted the agency to amend its future outlook on the long -term sovereign credit rating of Egypt.
The American administration imposed new customs duties on imported goods from almost all countries of the world on the second day of April. Customs duties exceeded expectations in terms of size and scope, with unconfirmed consequences for global growth and financial markets, according to the agency.
Later, the US administration stopped raising customs duties on all countries except for China on April 9th, but it kept the minimum customs duties by 10% on all countries.
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