Moody's upgrades Egypt

Moody's Investors Service said it upgraded the long-term foreign- and local-currency issuer ratings of the government of Egypt to B2 from B3.

The outlook was changed to stable from positive.

The ratings reflect an expectation that ongoing fiscal and economic reforms will support gradual, but steady improvements in Egypt's fiscal metrics and raise real GDP growth, Moody's explained.

The agency said it has increasing confidence that Egypt's large domestic funding base will support its resilience to refinancing shocks, the agency said.

The stable outlook balances the downside risks posed by very weak debt affordability and large financing needs alongside the longer-term challenges to a shift to a more inclusive, private sector-led growth model, Moody's said.

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