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
Closing Bell: Saudi main market ends week in red at 11,189
RIYADH: Saudi Arabia’s Tadawul All Share Index closed lower at the end of the trading week on Thursday, falling 1.34 percent, or 152.54 points, to finish at 11,188.73.
The benchmark index opened at 11,320.52 and trended lower throughout the session, finishing well below its previous close of 11,341.27.
Market breadth was sharply negative, with only 28 gainers compared with 236 decliners. Trading activity saw a volume of 239 million shares exchanged, with total turnover reaching SR5.5 billion ($1.47 billion).
In the parallel market, Nomu closed higher, rising 0.23 percent to 23,865.95, although decliners continued to outnumber advancers. The MT30 index closed at 1,508.60, down 1.46 percent, shedding 22.38 points by the end of the session.
Among the session’s top gainers, Dar Al Majed Real Estate Co. led advances, rising 5.43 percent to close at SR9.91.
Al Aziziah REIT Fund added 4.67 percent to SR4.48, while Al Majed Oud Co. gained 2.81 percent to SR161.20. AFG International Co. advanced 2.45 percent to SR17.17, and Al Mawarid Manpower Co. rose 1.37 percent to SR125.70.
On the losing side, Saudi Research and Media Group posted the steepest decline, falling 6.88 percent to SR107. Cherry Trading Co. dropped 6.23 percent to SR28.88, while Saudi Arabian Mining Co. slipped 5.41 percent to SR72.55.
Almasane Alkobra Mining Co. declined 5.38 percent to SR102, and Power and Water Utility Co. for Jubail and Yanbu ended 4.56 percent lower at SR31.36.
On the announcements front, Saudi Industrial Investment Group released its interim financial results for the twelve-month period ended Dec. 31, 2025, reporting a return to profitability on an annual basis despite posting a quarterly loss.
The company recorded a net loss of SR104 million in the fourth quarter, compared with a net profit of SR201 million in the same quarter of the previous year, which it attributed mainly to lower selling prices, higher operating costs, and increased general and administrative expenses.
For the full year, however, the group posted a net profit attributable to shareholders of SR197 million, compared with SR161 million a year earlier, supported by higher sales volumes and improved operational performance at several subsidiaries. The stock last traded at SR14.77, down 3.59 percent.
Separately, Saudi Exchange Co. announced the approval of a request by Merrill Lynch Kingdom of Saudi Arabia to terminate its market-making activities for Saudi Arabian Oil Co., effective Feb. 8.
The exchange said the termination relates specifically to the market-making agreement for Saudi Aramco shares and was approved in line with applicable market-making regulations.
