Moody’s, credit rating agency, upgraded Egypt’s rating to B2 from B3 and changed the country’s outlook to stable from positive.
Finance Minister Mohamed Moeit said that Moody’s decision to raise the credit rating of Egypt to B2 while maintaining a “stable outlook” is a new certificate from the world’s leading rating agency for the success of government reforms and the state’s commitment to implement its comprehensive programme of economic and financial reform. Additionally, this rating supports the gradual and continuous improvement of financial and economic indicators, the most important of which is the increase in GDP growth rates, the improvement of the growth structure, the decrease in the total budget deficit, and achieving surplus for the first time in many years, Moeit added.
He further noted that Moody’s said the size of a large and flexible domestic financing base would be more conducive to dealing with, absorbing and coping with external shocks such as global interest rate hikes or some financial outflows.
Moody’s also upgraded Egypt’s foreign currency senior unsecured ratings to B2 from B3, and its foreign currency senior unsecured MTN programme rating to (P)B2 from (P)B3.