Latest news with #Moody'sInvestorsService
See - Sada Elbalad
26-07-2025
- Business
- See - Sada Elbalad
Moody's Upgrades Turkey's Credit Rating to ‘Ba3' with Stable Outlook
Taarek Refaat Moody's Investors Service on Friday upgraded the country's credit rating to 'Ba3' from 'B1', citing an improved track record in monetary policy, easing inflation, and narrowing macroeconomic imbalances. The agency also revised Turkey's outlook to 'stable' from 'positive', indicating a more balanced view of the country's economic trajectory amid ongoing political and external risks. 'The upgrade reflects an increasingly credible track record of policymaking, particularly the central bank's commitment to a monetary policy framework that sustainably reduces inflationary pressures,' Moody's said in its statement. The upgrade comes just one day after the Central Bank of Turkey surprised markets by cutting its key interest rate by 300 basis points to 43%, resuming its monetary easing cycle after a brief pause due to political volatility earlier this year. Since President Recep Tayyip Erdoğan's reelection in 2023, Turkey has reversed course from years of unorthodox economic management. The government has embraced more conventional policies, including aggressive interest rate hikes, tighter credit controls, and a return to market-based financial mechanisms. These efforts appear to be bearing fruit. Official data show that annual inflation dropped to 35% in June 2025, down sharply from 72% a year earlier. Meanwhile, the Turkish lira has shown signs of stabilization, and foreign currency reserves—once severely depleted—have started to recover. However, the outlook remains tempered by lingering political uncertainties. In March, investor sentiment was rattled after the arrest of Istanbul Mayor Ekrem İmamoğlu, a leading opposition figure and key challenger to Erdoğan. The incident triggered a sudden hike in interest rates and a temporary drain on foreign reserves. Despite such tensions, international agencies are recognizing Turkey's shift toward orthodox economic policy. Earlier this month, S&P Global Ratings affirmed Turkey's credit rating and also maintained a stable outlook. While the 'Ba3' rating marks an improvement, it remains within non-investment grade, commonly referred to as 'junk status.' Nevertheless, it signals that Turkey's creditworthiness is on the mend, potentially boosting investor interest and lowering borrowing costs for the government and private sector. As Turkey navigates the complexities of economic reform and political headwinds, the coming months will test whether the central bank can maintain its current course without external shocks or policy reversals. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters Arts & Culture "Jurassic World Rebirth" Gets Streaming Date News China Launches Largest Ever Aircraft Carrier Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Arts & Culture South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle Business Egyptian Pound Undervalued by 30%, Says Goldman Sachs Sports Get to Know 2025 WWE Evolution Results News "Tensions Escalate: Iran Probes Allegations of Indian Tech Collaboration with Israeli Intelligence" Arts & Culture Hawass Foundation Launches 1st Course to Teach Ancient Egyptian Language
Express Tribune
15-07-2025
- Business
- Express Tribune
Aurangzeb briefs Moody's on Pakistan's reform push, stable outlook
Finance Minister Muhammad Aurangzeb speaks during a meeting with Moody's delegation in Islamabad on Tuesday. Photo: APP Listen to article Pakistan is re-entering global financial markets amid signs of macroeconomic stabilisation, with plans for its first Panda bond and ongoing talks for preferential tariff access with the United States to support an export-led growth strategy, Finance Minister Muhammad Aurangzeb said on Tuesday. In a virtual briefing with Moody's Investors Service, the finance minister outlined the country's macroeconomic turnaround, reform agenda, and external sector stabilisation efforts. Aurangzeb was accompanied by Minister of State for Finance Bilal Azhar Kayani and State Bank Governor Jameel Ahmad. The engagement, held at the Finance Division, was part of Islamabad's broader outreach strategy to regain investor confidence and improve its sovereign credit profile. According to an official statement, Aurangzeb highlighted Pakistan's recent macroeconomic gains, including a sharp drop in inflation, monetary easing through a reduction in the policy rate, exchange rate stabilization, and a current account surplus. He noted that foreign exchange reserves had crossed $14 billion by the end of June, aided by improved remittance flows and stronger export performance. The minister informed Moody's that Pakistan had successfully completed the final review under the IMF's $3 billion Stand-By Arrangement (SBA), which included the release of the final tranche. He also underscored progress under the Resilience and Sustainability Facility (RSF), terming both milestones as critical for restoring market credibility. 'The reform trajectory is firmly in place,' Aurangzeb said, pointing to recent budgetary measures aimed at fiscal consolidation, including expenditure rationalisation and a broadened revenue base. He reiterated that Pakistan is targeting a tax-to-GDP ratio of 13 to 13.5 per cent over the medium term. The Rs2 trillion revenue gain achieved this fiscal year, the minister noted, had come from autonomous administrative efforts, not through new tax measures alone. He stressed that tax reform remains a top priority under the direct oversight of the prime minister, with a focus on technology-driven enforcement, digitisation of tax systems, and plugging leakages. The team also apprised Moody's of ongoing discussions with the US regarding preferential tariff access for Pakistani exports, which Aurangzeb said were 'making encouraging headway.' The meeting served as a platform to showcase Pakistan's re-engagement with global capital markets. The finance minister revealed that $1 billion in commercial financing had already been secured from financial institutions in the Middle East. Additionally, Pakistan is actively working on launching its inaugural Panda bond — a renminbi-denominated bond to be issued in the Chinese market — and is exploring other international debt instruments, including a potential return to the Eurobond market, contingent on rating upgrades. He added that Pakistan remains committed to key structural reforms, including the privatisation and restructuring of state-owned enterprises (SOEs), as well as right-sizing of the federal government. Responding to queries, the minister reiterated that Pakistan is not looking for short-term fixes but is focused on building long-term, inclusive, and export-led growth, while expressing optimism that the reform momentum and macroeconomic stabilization would be reflected positively in future sovereign credit assessments. 'Pakistan is ready to carry forward this journey of resilience, reform, and recovery,' the finance minister concluded, signalling that the country was once again positioning itself as a credible investment destination.
Observer
11-07-2025
- Business
- Observer
Moody's upgrades Oman to investment grade
MUSCAT: Oman has received a major vote of confidence from international markets after Moody's Investors Service upgraded the Sultanate of Oman's credit rating to investment grade for the first time in several years. The rating was raised from 'Ba1' to 'Baa3', with the outlook revised to stable, signalling stronger financial performance, improved debt sustainability and enhanced investor confidence. This long-anticipated upgrade is a clear recognition of Oman's disciplined fiscal policies, effective debt management and structural reforms that have taken shape over recent years. According to the Ministry of Finance, the move reflects significant progress made across key financial indicators, including a reduction in public debt, lower debt servicing costs and a narrowing fiscal deficit. Public debt as a share of GDP dropped to 35.5 per cent in 2024, down from 37.5 per cent the year before. Oman also succeeded in reducing its average oil break-even price to $70 per barrel for 2024–2025, down from $84 during the 2016–2020 period. Public spending has been streamlined, falling from 41 per cent to 29 per cent, while the cost of servicing government debt declined from 9 per cent of total revenue in 2021 to just 7.2 per cent in 2024. Macroeconomic stability also remained strong. Oman recorded real GDP growth of 1.7 per cent in 2024 (at constant prices), with inflation kept remarkably low at just 0.7 per cent. The country achieved a fiscal surplus equivalent to 2.8 per cent of GDP and a current account surplus of 2.1 per cent, reinforcing its improving external balance. Ahmed bin Ja'afar al Musallami, Governor of the Central Bank of Oman, described the upgrade as 'a profound testament to our nation's resilience, visionary leadership and unwavering commitment to transformation.' In a widely shared LinkedIn statement, Al Musallami said the achievement reflects years of determined effort in managing the country's finances wisely and laying the foundation for a more diversified, sustainable economy. 'This milestone reflects disciplined fiscal stewardship, bold economic diversification and a relentless pursuit of a sustainable future,' he said. 'It exemplifies a deep-rooted commitment to financial stability, lower public debt and an economy that can thrive in times of global uncertainty.' He further noted that Oman is turning challenges into catalysts for long-term growth by accelerating development in non-oil sectors and preparing for future generations with a resilient economic base. The Ministry of Finance also confirmed that Oman's credit rating trajectory has steadily improved over the past 18 months. Moody's first changed the outlook from 'stable' to 'positive' in August 2024, before issuing the upgrade to 'Baa3' in July 2025. The report from Moody's suggests that further improvement is possible if Oman continues reducing its non-oil fiscal deficit and expands non-oil revenue streams. This upgrade strongly aligns with the goals of Oman Vision 2040, which prioritises economic diversification, private sector development and sound fiscal governance. It is expected to enhance Oman's attractiveness to global investors, reduce borrowing costs, and open new financing opportunities for infrastructure and development projects. 'Oman is shaping into a resilient and prosperous country,' Al Musallami said, 'driven by clear leadership, national unity and a collective resolve to take our country to greater heights of growth, stability and prosperity.'
Daily News Egypt
03-07-2025
- Business
- Daily News Egypt
Moody's Downgrades Afreximbank to B2 Amid Rising Credit Risk
Moody's Investors Service has downgraded the credit rating of the African Export-Import Bank (Afreximbank) for the second time in less than a month, reflecting growing concerns over the bank's asset quality and tightening access to funding. The downgrade moves Afreximbank's long-term issuer rating from B1 to B2, pushing the pan-African lender deeper into speculative-grade territory. However, the agency revised its outlook from 'negative' to 'stable,' signalling a pause in further immediate deterioration, according to a statement issued Tuesday evening. In its assessment, Moody's cited the bank's increasing exposure to high-risk sovereign borrowers as a key driver behind the rating action. The agency noted that Afreximbank has in recent years shifted away from its traditional mandate of trade finance to providing emergency liquidity and budget support to distressed African economies. 'The bank has taken on elevated credit risk by extending loans to governments with weak fiscal profiles,' Moody's said, adding that this has weakened the institution's asset profile and reduced its financial flexibility. The credit rating downgrade is expected to increase the bank's cost of borrowing in global capital markets and could lead to a reassessment of its funding terms from key partners. The move comes at a critical time for Afreximbank, which is actively working to manage its exposure to countries undergoing debt restructuring, including Ghana, Zambia, and Malawi. The bank has reiterated its status as a preferred creditor, a designation that grants it repayment priority in the event of sovereign defaults—a protection historically afforded to multilateral development banks. Headquartered in Cairo, Afreximbank has long been considered a key institution in facilitating intra-African trade, offering tailored financial instruments to support cross-border commerce and industrialisation across the continent. However, as macroeconomic pressures mount across Africa, the bank's evolving risk profile has drawn increased scrutiny from rating agencies. The latest downgrade follows a similar move by Fitch Ratings last month, which also cut the bank's credit rating and assigned a negative outlook. That decision led to a sharp decline in the value of Afreximbank's eurobonds, with some notes trading at their lowest levels in a year. Moody's warned that sustained exposure to financially fragile borrowers, unless carefully managed, could further undermine the bank's capital buffers and impact its long-term development mandate. Despite the pressure, Afreximbank remains one of Africa's largest financial institutions, with an active role in supporting the African Continental Free Trade Area (AfCFTA), sovereign financing, and COVID-19 economic recovery efforts.
Yahoo
20-06-2025
- Business
- Yahoo
World's Largest Publicly Traded Hedge Fund Enters ETF Space
Man Group, the world's largest publicly traded hedge fund manager, filed a preliminary prospectus for two active fixed-income ETFs, marking the London-based firm's first entry into exchange-traded fund distribution as alternative managers increasingly turn to ETFs for access to complex strategies. According to the June 13 filing with the Securities and Exchange Commission, the Man Active High Yield ETF and Man Active Income ETF will use active bond strategies, including derivatives, high-yield bonds, emerging markets exposure and illiquid credit investments—bringing institutional-grade bond management to everyday investors through ETFs. The move represents more than just another ETF launch in an already crowded marketplace. It signals how ETFs are evolving from their origins as simple baskets for broad market exposure into ways to deliver complex investment strategies once available only to hedge funds and large institutional investors. The Man Active High Yield ETF will invest at least 80% of net assets in high-yield securities rated below investment grade, according to the filing. The fund may invest up to 30% in securities rated below B3 by Moody's Investors Service or lower than B- by S&P Global Ratings or Fitch Ratings. The Man Active Income ETF seeks to generate current income as its primary objective, with capital growth as a secondary objective, according to the filing. The fund will invest across four primary sectors: high-yield corporate debt, investment-grade corporate debt, government and agency debt, and securitized debt. The filing reflects how ETFs have evolved from simple, index-tracking funds into vehicles for active strategies. For newer investors, this opens access to institutional-grade tools they couldn't reach before, but it also brings complexity. The filing reveals active bond management approaches from a firm known for its expertise in hedge funds. The strategies may invest in distressed securities, contingent convertible bonds and bank loans with extended settlement periods, according to the filing. Both funds are non-diversified and may use derivatives for hedging and return enhancement, including futures, options, swaps and credit-linked notes, according to the filing. GLG Partners LP serves as sub-adviser with portfolio managers Michael Scott overseeing the High Yield ETF and Jonathan Golan managing the Income ETF. Man Group reported $172.6 billion in assets under management as of March 31, according to its April trading statement. The firm saw $3.6 billion in net inflows during the first quarter despite geopolitical and economic | © Copyright 2025 All rights reserved
