Fitch Downgrades Ethiopia and Egypt's Credit Ratings on Rising Default Risk

Fitch has downgraded Ethiopia's credit rating to CC from CCC-, citing increased risk of default due to gaps in external financing. The country has struggled with debt, requesting a debt restructuring under the G20's Common Framework agreement. Delays in the process and slow movement on a requested bailout from the IMF have left Ethiopia short of cash. Fitch expects bilateral liquidity relief to be insufficient to address the financing gaps without renewed financing from international financial institutions.