Recovery ahead? Fitch ratings upgrades Egypt to 'negative to stable'

Published January 5th, 2014 - 03:55 GMT
Fitch also kept short-term foreign currency credit at B.
Fitch also kept short-term foreign currency credit at B.
Fitch Ratings raises Egypt's economic outlook from negative to stable however, the International credit rating agency kept its long-term foreign and local currency sovereign credit ratings at B-, a press release from Egyptian Finance Ministry said on Friday. Fitch also kept short-term foreign currency credit at B.
 
It is the first time that Fitch upgrades Egypt's economic outlook since 25 January revolution. Fitch said a relative improvement in the political situation, an availability of foreign currency and the financial aids from gulf countries that alleviated pressures on the budget has helped improving Egypt's outlook. 
 
The agency also referred to the rise of Egypt's International reserves and a decrease of foreign debt to 18.9 percent of the GDP. Fitch report mentioned that the increase of the public debt and the high budget deficit are the main risks when evaluation the Egyptian economy.
 
Other rating agency, Standard & Poor's has raised its long- and short-term foreign and local currency sovereign credit ratings on November, with a "stable" rating outlook as well. 
 
 

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