S&P changes Egypt outlook to stable

Standard & Poor's said it revised its outlook on Egypt to stable from positive and affirmed its B-/B long- and short-term foreign and local currency sovereign credit ratings.

S&P said the outlook revision reflects its view that the economic recovery will not outperform our previous expectations, with GDP growth projected at 4% on average over the next three years.

The agency now also thinks that Egypt's external imbalances will persist, with gross external financing needs exceeding 100% of the country's current account receipts and usable reserves in the next few years.

In S&P’s view, the strong external support that Egypt has received over the past few years could be affected by fiscal pressures in Gulf Cooperation Council countries.

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