CAIRO: “Maybe we are at the low point for Egypt,” Fitch Rating manager Bull Jambl said, taking into his consideration the last political improvements in Egypt. Global Rating Agency Fitch Rating analysts considered Abdel Fatah al-Sisi’s victory as president as a vital step toward getting high rates, Reuters reported Thursday.
According to the Fitch Rating timetable, Egypt’s outlook will be submitted for reviewing on January 27, 2015, he said and expects positive classification for Egypt especially with Sisi as president.
“Sisi’s victory was not in doubt…The very high turnout might have enhanced the legitimacy of the return to military rule in the domestic and international eye,” according to Fitch Rating’s last report about Egypt issued in May.
Fitch Rating expected that Egypt will achieve an improved budget performance with a 3.2 percent growth rate in the current fiscal year 2013-14.
The past three years of political fluctuation and unrest “since the beginning of the Arab Spring in 2011″ affected Fitch Rating’s vision for Egypt, which is why it gave Egypt low rates (B-) in July 2013 over fears of its delay to repay its debts, Al-Shark Al-Awsat newspaper reported.
“Such low ratings for Egypt by Fitch put it with the other states threatened with bankruptcy,” according to Al-Shark Al-Awsat and that it could affect the economy, which can cause fears for investors in a country with high-risks.
Over the development in political and economic situations over the past three years, Fitch gave Egypt high-rates, arguing that the roadmap development could attract more investments and increase the investors’ trust in the economy.
In January 2014, Fitch Rating reviewed the outlook on Egypt’s long-term rating to “stabilize” after three years on “negative” due to core improvements in political and economic, Reuters reported Thursday.