The Standard & Poor’s credit rating agency affirmed its outlook for the Egyptian economy at positive, while maintaining its debt rating at B-/B.
The credit rating agency said in its review that the positive outlook showcases potential for further improvements in Egypt’s external and fiscal positions, and reflects the view that the new exchange rate regime – driven by market forces – will help drive GDP growth and, over time, support the unification of the general budget.
Standard & Poor’s previously revised its outlook for Egypt’s economy to positive in March, after it had been stable, following the receipt of US$35 billion in investments from UAE.
It pointed out that the Egyptian government’s stated commitment to maintaining a market-determined exchange rate, along with the pillar of the expanded IMF program and other donor parties and foreign direct investment financing, would support Egypt’s growth prospects, fiscal revenues, and ability to adapt to external shocks.
The global agency indicated that the momentum of economic reform in Egypt is on the right track, and under the terms of the expanded program with IMF, as the country committed to a flexible exchange rate – tightening monetary and fiscal policies – slowing infrastructure spending to reduce inflation and maintain debt sustainability – and enhancing an environment that enables private sector activity.
