Moody's, the global rating agency, has changed Egypt's credit rating outlook to Stable from Negative on Monday, maintaining the government bond rating at ‘Caa1’.
The agency cited a more stable political and security situation and signs of economic recovery.
Moody's said government initiatives and reforms launched over the past year, including plans to phase out fuel and electricity subsidies, and measures to lift public revenues by a shifting to value-added tax system from a goods and services tax, had improved the outlook.
The agency added that the upgrade to the credit outlook may help restore confidence in an economy hammered by political turmoil that has weighed on investment and tourism for nearly four years.
Egypt's economy grew by 3.7% year-on-year in the fourth quarter, rising from 2.5% in the previous quarter.
Moody's said local investors are showing confidence in the economic recovery of Egypt, adding that strong demand from the recent $8.5 billion issue of Suez Canal investment certificates to retail investors was testament to investor confidence.
The agency cited a more stable political and security situation and signs of economic recovery.
Moody's said government initiatives and reforms launched over the past year, including plans to phase out fuel and electricity subsidies, and measures to lift public revenues by a shifting to value-added tax system from a goods and services tax, had improved the outlook.
The agency added that the upgrade to the credit outlook may help restore confidence in an economy hammered by political turmoil that has weighed on investment and tourism for nearly four years.
Egypt's economy grew by 3.7% year-on-year in the fourth quarter, rising from 2.5% in the previous quarter.
Moody's said local investors are showing confidence in the economic recovery of Egypt, adding that strong demand from the recent $8.5 billion issue of Suez Canal investment certificates to retail investors was testament to investor confidence.
Source:
Mubasher
