Cyprus and Egypt currently face the most immediate credit risks than other countries in the turbulent eastern Mediterranean region rated by Scope Ratings due to the Israel-Hamas conflict, according to the German credit rating agency.
A report titled ‘Hamas attacks test Israel’s economic resilience; adds risk to regional stability, global growth’, the rating agency also said that for now, the most immediate credit risks for sovereigns publicly rated by Scope are Egypt (B-/Negative Outlook). Because, it is under heavy strains and shares a short border with Hamas-controlled Gaza.
“But also Cyprus (BBB/Stable) which depends on Israel for oil and gas supplies,” it added.
Scope also argued that Turkey (foreign-currency rating: B-/Negative) may see its regional influence grow as it seeks to promote stability – similar to its role in the context of Russia’s war in Ukraine.