Moody's ups Egypt view to stable

Moody's Investors Service said it changed the outlook on Egypt's sovereign ratings and ceilings back to stable from negative. This affects Egypt's Ba1 local- and foreign-currency government bond ratings, its Ba2 country ceiling for foreign-currency bank deposits and its Baa2 country ceiling for foreign-currency bonds.

The upgrade was motivated by the easing of inflation in Egypt since its peak in August 2008, the government's efforts to contain fiscal pressures and the resilience displayed by Egypt's economy and banking system, Moody's said.

Concern over the adverse social and economic consequences of soaring inflation led to the negative outlook in mid-2008, the agency said. Such concerns have been allayed as inflation has receded somewhat and the bout of double-digit price growth over the past 18 months does not seem to have caused serious social or fiscal dislocations, Moody's added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.