S&P: Egypt outlook now stable

S&P said it revised its outlook on the long-term sovereign credit rating on Egypt to stable from negative.

At the same time, S&P affirmed the B- long-term and B short-term foreign and local currency sovereign credit ratings.

After last week's decision by the Central Bank of Egypt to float the Egyptian pound, S&P said it expects the International Monetary Fund to approve the three-year US$12 billion Extended Fund Facility that it announced on Aug. 11. The authorities' shift to a more flexible exchange rate regime fulfilled a key IMF condition, and is also a “vital step” toward alleviating Egypt's acute foreign currency shortage, narrowing the differential between the official and unofficial exchange rates and improving the country's export competitiveness, S&P said in a news release.

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