Fitch Rates Egypt’s IDR as Positive

Fitch Rates Egypt’s IDR as Positive

Fitch Ratings reviewed the Outlook on Egypt’s Long-Term Foreign-Currency Issuer Default Rating (IDR) and changed it to Positive from Stable, as it affirmed Egypt’s IDR at ‘B’, Egypt Oil & Gas reports.

Egypt’s Outlook revision showed that the country is adopting a progressive reform program and is going on track with the international monetary fund (IMF)’s $12 billion three-year Extended Fund Facility (EFF).

Macroeconomic stability is beginning to improve in Egypt from its fragile state, Fitch stated.

The revision presented public finances as the main weakness in the country’s economic profile. However, it forecasted Egypt’s continued fiscal consolidation to decrease government debt/GDP in 2018. Fitch expected Egypt’s general government debt/GDP to drop to 93% in 2018, compared to a peak of 103% in 2017.

Foreign currency reserves at the Central Bank of Egypt (CBE) have increased to $37 billion in November 2017, compared to $19.1 billion in October 2016, Fitch said, adding that Egypt’s current account deficit started to decrease since CBE’s exchange rate reforms that started in November 2016.

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Sarah Samir 3530 Posts

Sarah has been writing in the oil and gas field for 8 years. She has a Bachelor Degree in English Literature. She has three years of experience in the banking sector.

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