Global ratings agency Moody's Investors Service on Tuesday upgraded Egypt's issuer and senior unsecured bond ratings to B3 from Caa1, with a ‘Stable’ outlook.

The rating upgrade was based on several factors, namely improving macro-economic performance, a reduction in external vulnerabilities and the government’s ongoing commitment to fiscal and economic reform, according to Moody’s.

In Tuesday’s rating action, Moody's also raised Egypt's foreign-currency bond ceiling to B2 from B3, the foreign-currency deposit ceiling to Caa1 from Caa2 and the local-currency country risk ceiling to Ba2 from Ba3.

The short-term country ceilings for foreign-currency bonds and deposits remain unchanged at Not-Prime (NP). The Aaa rating assigned to Egypt's senior unsecured bonds backed by the US government remains unaffected by the rating action.

Moody's expects real GDP growth in Egypt to recover to 4.5% year-on-year for the current fiscal year 2015, which ends in June, and then to rise to around 5% to 6% over the coming four years.

Moody's added that its expectation of a recovery in domestic and foreign investment is underscored by the strong donor support in Egypt's Economic Development Conference, which was held 13-15 March in Sharm El-Sheikh.

Egypt’s central bank announced Tuesday that the country’s foreign currency reserves reached $15.291 billion at the end of March, down $165 million or 1.07% from $15.456 billion a month earlier. Reserves rose in January and February, 2015.

Meanwhile, central bank governor Hisham Ramez said Tuesday that Egypt will receive the financial aid pledged by GCC states in 10 days.

The UAE, Saudi Arabia, Kuwait and Oman pledged $12.5 billion in aid for Egypt’s economy during last month’s economic summit.