Egypt Receives ‘B’ Rate with Stable Outlook

Egypt Receives ‘B’ Rate with Stable Outlook

Fitch Ratings, one of the three biggest credit rating agencies in the world, has maintained its sovereign rating on Egypt at a ‘B’ with a Stable Outlook, informed Reuters.

Egypt, the most densely populated nation in the Arab world, is believed to have received a ‘B’ rating due to the foreign currency shortages, high fiscal deficit, and unstable economy that the country has been witnessing. This is the lowest rating that Fitch has given to a Middle Eastern country, along with Lebanon, reported The National.

Ahram Online quoted the international credit rating agency saying that “general government debt increased to an estimated 90.3% of GDP in the 2016 fiscal year, well above the peer median.” Fitch assumes that the Egyptian pound will continue to weaken – given the modest deficit reduction that occurred – and this is expected to increase the general government debt to 90.5% in the fiscal year 2017.

Reuters stated another prediction made by Fitch towards Egypt’s GDP growth; it is expected to increase to register 3.6% in FY 2017 compared to a 3.2% GDP growth rate in FY 2016.


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