Ratings agency Fitch has affirmed Egypt’s Long-Term Foreign- and Local-Currency Issuer Default Ratings at B with a stable outlook. The main factors that Fitch says, individually or collectively, could lead to a positive action are: Continued progress on fiscal consolidation leading to declining government debt/GDP, sustained stronger economic growth supported by reforms to the business environment leading to increased investment and employment, and further strengthening of international reserves following a sustained narrowing of the current account deficit and higher net foreign direct investments. The rating assumes the political environment will be more stable than in 2011-13 “although sporadic, and at times serious, attacks on security forces are assumed to continue and underlying political and social tensions will remain.”

Meanwhile, Moody’s said Egyptian banks will benefit from the improved tourism prospects, in an emailed report. “The increase in tourism is positive for Egyptian banks because it enhances the repayment capacity of borrowers directly and indirectly linked to tourism. Set to benefit the most from the increase is CIB “because it has the largest exposure to the sector.”