The Financial & Economic Impact of the Performance of Developing Countries’ Economies on Their Credit Rating {Applied study on Egypt’s credit rating during the period (1996-2018)}

This study aims to examines the dynamic effects of economic performance on credit ratings in Egypt during the period (1996-2018) consisting of quarterly observations for each variable. The study adopted the ARDL bounds testing approach to establish these relationships which showed that there exists a positive short run and long-run relationship between the credit rating, (GDP) growth domestic product and (FDI) foreign direct investment, while there are significant negative relationships in both short and long run between budget deficit, external debt, exchange rate and the credit rating. This result implies that GDP, FDI, foreign reserve and budget deficit are essential macroeconomic variables that influence the economic performance and the credit rating in Egypt.