FITCH RATINGS HAS AFFIRMED EGYPT’S LONG-TERM FOREIGN-CURRENCY AND LOCAL-CURRENCY ISSUER DEFAULT RATINGS (IDRS) AT ‘B’ WITH A POSITIVE OUTLOOK
August 7th, 2018
Fitch Ratings has affirmed Egypt’s long-term foreign-currency and local-currency issuer default ratings (IDRs) at ‘B’ with a positive outlook, it said in a statement. The ratings agency forecasts Egypt’s GDP growth at 5.5% in FY18/19 and FY19/20 and sees average inflation to drop to 11.6% in 2019, down from 13% in 2018. Fitch estimates general government debt-to-GDP to fall below 93.6% in FY17/18 from 103% in FY16/17, with further fiscal consolidation to reduce the figure to c88% in FY18/19 and c75% in FY22/23.
HC’s comment: fitch has revised the outlook on Egypt to positive from stable last January on improving macroeconomic stability from a fragile state. Affirming this outlook is a confirmation to the improving macroeconomic fundamentals, which should reflect positively on investor’s perception of Egypt’s risk profile, and should reflect in lower demanded yields on Egypt’s debt instruments.
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