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Oct 10 (Reuters) – S&P Global upgraded Egypt’s rating by a notch on Friday, citing ongoing reforms that have led to a sharp rebound in GDP growth, while Fitch highlighted the country’s fairly high growth potential and strong support from partners in its affirmation.
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S&P said the strategic importance of Egypt has been highlighted and elevated by the conflict in Gaza, and has been part of the reason that Gulf Cooperation Council members and other countries continue to extend financial support to Egypt.
“We consider the risk from an escalation of tensions with Israel has increased only moderately over recent months, and energy collaboration continues to progress,” Fitch added in its statement.
Alongside the IMF programme, the commitment to a market-determined exchange rate, should continue to support Egypt’s GDP growth prospects and fiscal consolidation efforts over fiscal years 2025-2028, S&P said.
According to S&P, the reforms undertaken over the past 18 months by the authorities, including the liberalization of the foreign exchange regime, have led to the sharp rebound in Egypt’s GDP growth, boosted tourism and inward remittances.
S&P and Fitch maintained their outlook for Egypt at ‘stable’.
Reporting by Nishara K.P in Bengaluru; Editing by Shailesh Kuber
Our Standards: The Thomson Reuters Trust Principles.