Cairo – Mubasher: Moody's Investors Services has left Egypt's credit rating unchanged at B3 with a stable outlook, according to a report issued on Saturday.

The main driver behind this stable rating is the credit-positive staff-level accord with the International Monetary Fund (IMF), the report indicated.

In addition, the rating agency maintained the country's B3 rating, six marks below investment grade, due to the government's external payments, weaker finance, security concerns, and high unemployment.   

"The stable rating outlook reflects Moody’s view that despite the somewhat slower-than-expected implementation of fiscal and economic reforms over the past 12-18 months, upward and downward pressures on the rating are balanced," said Moody’s

Earlier this month, Egypt has reached an initial agreement with the IMF for taking out a three-year facility in order to alleviate the widening fiscal deficit and to back the government's reform program, pending the approval of the IMF executive committee, which will likely meet in the coming weeks.

"In Moody’s view, the agreement reached with the IMF is also important because it will unlock external funding from other multilateral and bilateral sources, and support the implementation of fiscal and economic reforms," the ratings agency said.

For a better credit rating, Moody's suggested the government should lower the fiscal deficit and the external debt, inflation, and external financing. These measures should be further accompanied by improving foreign reserves, economic growth to pre-revolution levels, and local security situation. Otherwise, the rating agency would consider downgrading the country's credit rating.