(Bloomberg) -- Egypt’s credit rating was upgraded by Fitch Ratings for the first time since 2019, the latest boost for the economy emerging from two years of crisis after securing a $57 billion global bailout.
Fitch upgraded the North African country’s rating one level to B from B-, with a stable outlook, according to a statement on Friday. The agency attributed the change to lower external risk, policy adjustment, replenished external buffers, new capital inflows and a more flexible exchange rate.
“Egypt’s external finances have been bolstered by the Ras El-Hekma foreign investment, non-resident inflows into the debt market, and new IFI financing, facilitated by improved policy settings, including greater exchange rate flexibility and tighter monetary conditions,” Fitch said.
Egypt delivered its biggest-ever interest-rate hike and allowed its currency to weaken about 40% against the dollar in March, seeking to resolve a chronic foreign-currency shortage and unlock foreign funding after months of uncertainty.
Authorities, who agreed an expanded International Monetary Fund program, are now seeking to drum up investment via a state divestment program and cut subsidies on fuel and electricity in recent months in a bid to rein in spending.
The Washington-based lender’s chief will travel to Egypt next week for talks on the $8 billion program that authorities have said is becoming harder to enact with the Middle East in turmoil
Egyptian long-term foreign currency debt rating was affirmed by S&P at B- in October, with keeping positive outlook. Moody’s Ratings assigns Egypt at Caa1, with positive outlook.
Statement: Fitch Upgrades Egypt to ‘B’; Outlook Stable
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