The Standard & Poor’s credit rating agency upgraded Egypt’s outlook from stable to positive, affirming its rating at B-.
Standard & Poor’s said that the positive outlook reflects the view that market forces determining the exchange rate will help boost Egypt’s gross domestic product.
The agency added: “We see the extreme increase in the Egyptian government’s debt servicing as a major weakness in its rating.”
This comes days after credit rating agency Moody’s announced that it had decided to modify Egypt’s outlook to positive, confirming its rating at CAA1.
The agency said in a statement that the change in the Egyptian economy’s outlook reflects the great support that was announced and the noticeable policy steps that were taken recently.
Moody’s added that confirming the rating reflects the high debt ratio in Egypt and the weak ability to bear debt compared to its counterparts.
