DUBAI: Moody’s Investors Service has affirmed Egypt’s long-term issuer and senior unsecured bond ratings at B3, six levels below investment grade, and kept its stable outlook for the country.
Very weak government finances will continue to constrain the rating pending further clarity on the sustainability and impact of the reform program, Moody’s said, noting that the country’s international reserves has been driven mainly by debt-creating inflows.
Egypt has raised $7 billion (SR26.25 billion) from the sale of Eurobonds in the fiscal year that ended in June, including $4 billion in January consisting of five, 10 and 30-year bonds with yields of 6.125 percent, 7.5 percent and 8.5 percent, respectively.
IMF is due to disburse the second $4 billion installment of its $12 billion facility for Egypt, while World Bank is set to release the last $1 billion of the three-year loan it granted to Cairo. The nation is also expecting to receive the last $500 million from its African Development Bank loan.
“Moody’s expects Egypt’s credit profile to remain heavily influenced by the government’s very weak government finances for a sustained period, with already high fiscal deficits continuing to grow in nominal terms over the coming years and declining only gradually as a percentage of GDP,” the ratings agency said.
“As a consequence, Egypt’s government financial strength will remain very weak for the foreseeable future, with debt and debt affordability metrics continuing to exceed by some margin the median for B3-rated sovereigns.”
Egypt plans to again tap the global debt markets in January to raise as much as $4 billion to help plug its budget deficit, which is now about 11 percent of GDP as of end June.
Moody’s likewise cautioned that any sign of a slowdown in Egypt’s reform program, which would have implications for government finances and external liquidity, could jeopardize its rating and outlook for the country.
“Renewed social and political instability or a material deterioration in the security situation could also lead to a negative rating action,” the agency said.
Moody’s affirms Egypt’s credit rating, gives stable outlook
Moody’s affirms Egypt’s credit rating, gives stable outlook
Saudi energy minister holds series of high-level meetings to cement collaborations
RIYADH: Saudi Arabia’s Minister of Energy held a series of strategic meetings in Riyadh with senior ministers from various counties, in a diplomatic push to bolster international energy collaboration.
Officials from Greece, Brazil, and Morocco were among those to meet with Prince Abdulaziz bin Salman, as well as representatives from Libya and Pakistan.
The discussions centered on expanding cooperation across a wide spectrum of energy sectors, from traditional hydrocarbons to cutting-edge clean technologies, according to the Saudi Press Agency.
The engagements underscored Saudi Arabia’s proactive role in shaping the global energy transition through bilateral partnerships. A consistent theme across the talks was the dual focus on securing energy supplies and advancing climate-related solutions, including renewable power, clean hydrogen, and carbon management.
Deepening European and South American ties
Prince Abdulaziz bin Salman met with Greece’s Minister of Environment and Energy, Stavros Papastavrou. Building upon a previously signed Memorandum of Understanding, the two officials explored avenues for joint cooperation in oil and gas, electricity, and renewables, as well as other related sectors.
In a separate meeting with Brazil’s Minister of Mines and Energy, Alexandre Silveira, the parties discussed prospects for collaboration across various energy domains. They reviewed means to enhance coordination, particularly in electricity, renewables, oil and gas, and the exchange of technical expertise.
Signing a program with Morocco
A key outcome emerged from the meeting with Morocco’s Minister of Energy Transition and Sustainable Development, Leila Benali. Following their discussions on mutual interests, investment opportunities in renewables, and energy efficiency, the two sides signed an executive cooperation program.
This program, falling under an MoU signed in May 2022, aims to concretize the energy partnership. Its goals are boosting mutual investments in renewable projects and enabling national companies to collaborate on renewable energy projects.
It also encompasses using renewables in development projects, establishing joint research and development centers, and facilitating training and knowledge transfer.
Strengthening regional and Islamic cooperation
Prince Abdulaziz also conferred with Libya’s Minister of Oil and Gas, Khalifa Rajab Abdulsadek. Their meeting focused on energy cooperation, including energy technologies and solutions, as well as enhancing investment opportunities in renewables and energy efficiency.
Discussions with Pakistan’s Minister of Petroleum, Ali Pervaiz Malik, covered shared interests in oil and its supplies, renewable energy, energy efficiency, joint investment opportunities, and the exchange of expertise in project, policy, and regulatory development.
This flurry of diplomatic activity highlights Saudi Arabia’s comprehensive energy strategy, which seeks to maintain its leadership in traditional energy markets while pursuing a stake in the future clean energy economy.
