Moody's revises Egypt's outlook to 'negative' on weak debt affordability
Adds agency statement in paragraph 3
Jan 18 (Reuters) -Global ratings agency Moody's revised its outlook on Egypt to "negative" from "stable" on Thursday, citing increasing risks that the country's credit profile will continue to weaken amid difficult macroeconomic and exchange rate rebalancing.
Continued access to official financial support from the International Monetary Fund (IMF) was expected to increase Egypt's debt affordability, but "policy actions and external support may prove insufficient to prevent a debt restructuring" given its weak debt metrics.
"A significant increase in interest payments and mounting external pressure have complicated the macroeconomic adjustment process" Moody's said in a statement.
The agency expects Egypt's track record of fiscal reform implementation capacity to help unlock further financial support from the IMF.
It affirmed the sovereign's credit rating at 'Caa1'.
Reporting by Richard Rohan Francis in Bengaluru; Editing by Shailesh Kuber
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