Fitch affirms Egypt IDR ratings, sees EGP at 16 by July 2017, at 14.50 in FY2018. Fitch affirms Egypt’s long-term foreign- and local-currency issuer default ratings at ‘B’ with a “Stable” outlook.Fitch says the “ratings balance a large fiscal deficit, a high general government debt/GDP ratio, strains on the balance of payments and recent volatile political history, with low albeit rising external debt and renewed progress in implementing an economic and fiscal reform programme.” Fitch also thinks Egypt will miss its budget deficit target for FY2016-17, expecting it to record a deficit of 11.6%, as “the subsidy bill will increase because the impact of the weaker EGP on import costs of fuel, for example, outweighs the subsidy price reform.” The ratings agency believes fiscal conditions will improve in FY2017-18, forecasting greater fiscal consolidation narrowing the budget deficit to 9% and GDP growing at a rate of 4.5% “as the exchange rate adjustment beds in, as gas production starts at the giant Zohr field, and with stronger investment.” The ratings agency also expects the EGP to stand at 16 to the greenback by July 2017, with the currency appreciating to 14.50 in FY18.