Fitch Upgrades Egypt’s Outlook To Positive

[dave99]

FITCH UPGRADES EGYPT’S OUTLOOK TO POSITIVE
Source Ameinfo.com, June 18, 2007

Content Fitch Ratings (link here) has recently upgraded Egypt’s issuer default rating (IDR) on long-term foreign currency from stable to positive with a rating of BB+.

The agency has also affirmed Egypt’s long-term local currency IDR at BBB with a stable outlook, its short-term foreign currency IDR at B and its country ceiling at a rate of BB+.

The agency credits Egypt's ongoing economic reforms for the upgrade, reforms which are gradually addressing the obstacles standing in the way of a confident financial market. According to Fitch analysts, Egypt’s budget deficit and debt ratio are expected to fall appreciably this year, indicative of a new trend. Moreover, banking system restructuring inches closer to completion; and further reforms aimed to improve the business environment are taking shape. Growing confidence in the policy framework has brought increased investment and accelerated economic growth, as reflected in a current account surplus, strong capital inflows, and increased reserves. Such improvements are the reason Egypt was able to attain a net external creditor status last year, a status unusual for countries in the 'BB' rating category and a testament to Egypt’s real potential for progress.

Extracted from The American Chamber of Commerce in Egypt.

A bit of positive news I think.