CAIRO: Standard & Poor’s credit-rating agency announced Friday it had reaffirmed Egypt’s long-term and short-term foreign and local currency sovereign credit ratings at ‘B-/B’, and recognized Egypt’s fiscal outlook as stable.
S&P’s confirmation of its previous classification reflects the agency’s view that foreign donors will continue supplying Egypt with sufficient foreign funds to help the country overcome its current fiscal crisis and manage its fiscal internal and external needs according to Mubasher financial news.
The S&P ratings follow Fitch Ratings decision in February to grade Egypt’s current sovereign rating at ‘B-’and upgrade the country from negative to stable. Fitch Ratings forecast the possibility for future fiscal reform benefiting Egypt, but said that public finances are still a major weakness in the country and that because a 15 percent improvement in government revenues was driven by $5.3 billion in grants, Egypt still had a long way to go to catch up with its ratings peers.
“[S&P] putting Egypt’s credit outlook at stable is considered a positive indicator for the economy and the upcoming period and a partial improvement in the investment sector,” Abdul Muttalib Abdul Hamid, former head of Sadat Academy for Management Sciences, told The Cairo Post.
Abdul Hamid said that S&P affirming Egypt’s sovereign credit rating reflects economic recovery and international confidence in the implementation of the roadmap and presidential elections.