Moody’s Upgrades Egypt

Rating’s agency Moody’s has upgraded Egypt’s long term credit rating from B3 to B2, just under a month since competitor Fitch also upgraded the country’s long term credit rating ( MEES, 29 March ).

On the rating’s agency scale, the Moody’s upgrade remains five notches below investment grade and one below Fitch’s rating. Moody’s says the upgrade is mainly down to the “expectation that ongoing fiscal and economic reforms will support a gradual but steady improvement in Egypt’s fiscal metrics and raise real GDP growth.”

Egypt’s finances have improved since it entered a $12bn loan agreement with the IMF in November 2016 ( MEES, 4 November 2016 ). The IMF plans to visit Egypt next month to prepare the fourth and final review of the country’s finances, with a view to disbursing the fifth and final instalment of the $12bn loan. (CONTINUED - 144 WORDS)