Fitch revises outlook on Egypt’s long-term local currency rating to stable. Fitch yesterday revised the outlook for Egypt's long-term local currency rating to stable from negative. The rating was maintained at BBB. Fitch also maintained Egypt's long-term foreign currency rating at BB+ and its short-term foreign currency rating at B.
Fitch said that the Egyptian Prime Minister and his cabinet have been focussing on reforms. The new administration had focused on increasing trade and investments by reforming the poor customs service of the country, which has hitherto been hampering trade.
Fitch believes that Egypt’s political leadership is internally convinced for the need of reforms for improving the country’s economic prospects. Egypt’s new government, which was appointed in July, has taken several steps such as lowering import tariffs, focussing on privatisation, etc to improve the economy.
Fitch’s revision on outlook comes close on the heel of the country entering tripartite trade agreement with Israel and US. S&P in a report released in August had said that the downward pressure on Egypt’s credit rating (foreign currency BB+/Negative/B) could ease because of the new economic strategy and the cabinet reshuffle in July.