On Friday, Fitch Rating Agency revised Egypt’s outlook from stable to positive. The agency confirmed Egypt’s rating at (B-), noting the low risks of external financing and the strength of foreign direct investment.
In March, the International Monetary Fund approved $8 billion in expanded financial support for Egypt. An IMF official said last month that the Fund’s loan program with Egypt would help the country gradually reduce its debt burden.
Fitch said: Initial steps to contain off-budget spending would help reduce the risks of public debt sustainability. She added in a statement, “Exchange flexibility will be more sustainable than in the past, which partly reflects its close monitoring in the context that the Extended Fund Facility Program (signed between Egypt and the Fund) will continue until late 2026.”
Moody’s credit rating agency had revised its outlook for Egypt to positive in early March, while keeping its rating unchanged due to the high proportion of government debt and weak debt sustainability compared to its counterparts.