Investors Are Ignoring Egypt’s Credit Ratings
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Egypt is bucking the conventional wisdom when it comes to gauging a country’s ability to repay its debt.
Two major credit rating companies rank the North African nation lower than Nigeria and Argentina, two of its main emerging-market competitors. Yet the cost of insuring Egypt’s debt against default for five years is lower than Nigeria’s and almost the same as Argentina’s. The suggestion is that investors are prepared to look past credit ratings when assessing a nation’s ability to repay debt.