S&P upgrades Egypt’s outlook to positive from stable

CAIRO – 11 November 2017: International credit rating Standard and Poor's (S&P) upgraded on Friday Egypt's outlook to positive from stable, while maintaining Egypt’s sovereign credit rating at B-.

The rating agency said Egypt outlook revised to positive on the back of rising reserves and strengthening economic growth.

S&P said that the positive outlook reflects potential upgrade over next year if Egypt continues to implement reforms to support investment and growth.

It maintained the B- sovereign credit rating, meanwhile, reflecting wide fiscal and external deficits, high public debt, and low income levels.

This is the first upgrade to Egypt's rating since May 2015.

S&P expected political stability in Egypt to continue under president SISI, while not seeing a significant policy changes in run-up to elections in early 2018.

Egypt’s economic growth increased in the last quarter of fiscal year 2016/2017 to 4.8 percent, while its foreign reserves peaked in October, to reach $36.702 billion, compared with $36.535 billion at the end of September, surpassing pre-2011 Revolution levels.