ISTANBUL
Credit rating agency, Moody’s raised its credit outlook for Egypt from “negative” to “stable” on Monday, citing improvements in general atmosphere and signs of economic recovery.
“Moody's Investors Service has today changed Egypt's outlook to stable from negative and affirmed its Caa1 government bond rating.” Moody’s said in a report released in its website.
Moody’s pointed out the key drivers for the upgrade of outlook as “stabilised political and security situation, the launch of government initiatives toward fiscal consolidation, signs of a growth recovery and an improvement in macroeconomic stability, and strong support from external donors.”
However the agency noted that Egypt's current Caa1 government bond rating remained as it is due to high fiscal deficit, high government debts, very large fiscal borrowing needs.
Gross Domestic Product of Egypt grew by 3.7 percent year on year in the fourth quarter of the fiscal year and rose by 2.5 percent compared to the previous quarter according to announcement from Egypt’s Planning Ministry October 13.
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