Moody’s has upgraded Egypt’s credit rating to B2 with a stable outlook from B3 with a positive outlook, the ratings agency said in a statement. The agency said that the country’s ongoing commitment to reform will gradually improve the government’s fiscal position and stimulate economic growth. Stronger state finances, together with the country’s banking sector, will mitigate the effects of external financing shocks.

Moody’s changed its outlook to stable due to what it described as “weak debt affordability and large financing needs.” It described Egypt’s fiscal position as “very weak” compared to other countries, and forecast interest payments to continue eating up almost 45% of the government’s revenue going forward.

Egypt’s debt will continue to ease on the back of strong economic growth and falling inflation, Moody’s said, adding that the Sisi administration’s commitment to reforms could produce greater-than-expected economic growth, while the narrowing of the current account deficit may also beat expectations if natural gas exports pick up.