Fitch Ratings revises Egypt's outlook to positive, affirms at 'B' rating

Fitch Ratings revised the outlook for Egypt’s Long-Term Foreign and Local-Currency Issuer Default Ratings (IDRs) to positive from stable, and affirmed IDRs at a ‘B’ rating, according to a press release issued by the credit rating agency on Tuesday.

Fitch said that Egypt has achieved “significant progress” with its economic reform programme.

“Fiscal consolidation is proceeding, although it will require a multi-year effort to reverse the increase in general government debt/GDP witnessed since the Arab Spring uprisings,” Fitch Ratings said.

The agency forecasts government debt/GDP to fall to 93 percent in fiscal year 2017/18 from a peak of 103 percent in fiscal year 2016/17, and to 88 percent by the end of fiscal year 2018/19.

“The key risk to this outlook is that reform momentum weakens,” reads the press release.