S&P raises Egypt’s credit outlook to Positive from Stable
Standard & Poor’s raised Egypt’s outlook to Positive from Stable on the back of rising FX reserves and strengthening economic growth, according to a statement from the S&P (paywall) on Friday. The positive outlook reflects a "potential upgrade over next year" if Egypt continues to carry outs its reforms to support both investment and growth. The S&P expects political stability in Egypt to continue under President Abdel Fattah El Sisi, with the rating agency adding that it does not foresee significant policy changes in the run-up to elections in early 2018. The S&P maintained Egypt’s long-term credit rating at ‘B-‘, “reflecting wide fiscal and external deficits, high public debt, and low income levels.” "[The upgrade] will contribute in attracting more foreign investment to the country, and reduce the cost of financing to both the state and institutions, as well as the private sector," Finance Minister Amr El Garhy said in a statement following the announcement of the upgrade.