86234
S&P Upgrades Egypt Debt Rating to Stable
S&P Upgrades Egypt Debt Rating to Stable

S&P Upgrades Egypt Debt Rating to Stable

S&P Upgrades Egypt Debt Rating to Stable

Egypt’s credit-rating was upgraded one notch by S&P Global Ratings, which cited strengthening economic growth and rising external foreign exchange reserves.
Long-term rating was lifted to B, or five levels below investment grade, from B-, S&P said in a statement late Friday. The outlook on the rating is stable, Bloomberg reported.
The revision reflects broader confidence in the changes taking place in the Arab world’s most populous nation since the November 2016 decision to float the currency. That move, while halving the pound’s value against the US dollar and sending inflation soaring, also helped secure a $12 billion International Monetary Fund lifeline and attract foreign investors.
“Liberalization of the currency regime on Nov. 3, 2016 has reduced external imbalances and boosted remittances and portfolio inflows, leading to higher foreign reserves,” S&P said in the report. “Inflation has started to moderate, partly because of base effects but also reflecting the increasing effectiveness of the monetary framework.”
Egyptian officials have touted the progress they’re making in reviving an economy battered in the wake of the 2011 uprising that ousted president Hosni Mubarak. The lifting of currency controls in 2016, accompanied by a cut in fuel subsidies, was lauded by the IMF and international investors who, in turn, have pumped in more than $19 billion into the domestic debt market.
The economic growth rate in the first half of the current fiscal year climbed to 5.2% compared to 3.6% a year earlier, according to the planning minister. The IMF is projecting GDP growth of 4.8% this fiscal year from 4.2%. The fund also expects officials to adopt more expansionary monetary policy and cut interest rates as annual inflation that hit a record of over 33% last year slows.
Meanwhile, Finance Minister Amr el-Garhi welcomed S&P’s upgrading of Egypt’s sovereign credit rating from B- to B.
In a press release late Friday, Garhi said the better rating with a stable outlook is a new step confirming that “we are on the right track, and represents a certificate of success of the Egyptian economic reform program.”
Caption
The economic growth rate in the first half of the current fiscal year climbed to 5.2% compared to 3.6% a year earlier.

 

Short URL : https://goo.gl/ebd8xD
  1. https://goo.gl/1Z7q4q
  • https://goo.gl/oKatpA
  • https://goo.gl/iN6YGN
  • https://goo.gl/NSUGkG
  • https://goo.gl/KDdBm4

You can also read ...

Shifting transactions from cash to digital payments holds great promise for  individuals, businesses and governments.
More than 23% of the world's economy operates out of sight of...
Federal Reserve Board Chairman Jerome Powell speaks during a hearing before the Senate Banking, Housing and Urban Affairs Committee.
US Federal Reserve Chairman Jerome Powell said protectionism...
India Launches 888 Anti-Dumping Probes
The Indian government has initiated as many as 214 anti-...
Fitch Retains Philippine  Debt Rating
Global debt watcher Fitch Ratings kept the Philippines’...
Africa Next Frontier for Crypto
Cryptocurrency is not bound by geography because it is...
EU to Fine Google $5 Billion
Google will be fined about €4.3 billion ($5 billion) by the...
The warnings come amid a period of financial uncertainty for the world.
US officials who helped the country survive the 2008 financial...
Copper Prices to Go on Steroids
Copper’s slump amid a deepening global trade conflict offers a...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus