Global credit conditions set to weaken, says Moody’s, but Egypt is gonna be okay: Global credit conditions will weaken as growth slows and risk rises, according to Moody’s. The credit ratings agency said this week that the global economy is facing headwinds from multiple fronts: geopolitical tensions, liquidity issues in the financial markets, the Chinese economic slowdown, and rising trade friction are all contributing to declining credit conditions.

Slower global growth will remain supportive of advanced economies, but Moody’s warns that developing economies might experience weaker growth. Normalizing monetary policy will raise funding costs and widen spreads, keeping debt levels high and expensive. Credit risk will rise on the back of tighter liquidity, higher market volatility, and higher funding costs.

Despite the doom-and-gloom, Moody’s did have some good news: Egypt falls in the 9% of countries whose forecasts are positive, along with Iceland, France, Israel, Montenegro, and Greece among others. We reported this week that Moody’s pointed to Egypt’s growth and reforms as credit-positive factors and their positive outlook on Egypt’s banking system.