Economics

In a Nod to Reforms, Moody's Raises Egypt Credit Outlook

  • Long-term rating kept at B3, six levels below investment grade
  • IMF-backed reforms helped offset debt refinancing risk
Moody’s raised Egypt’s credit outlook from stable to positive. Abdul Kadir Hussain of Arqaam Capital weighs in.(Source: Bloomberg)
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Egypt’s credit outlook was raised from stable to positive by Moody’s Investors Service, which cited progress in implementing a program backed by the International Monetary Fund to bolster economic growth and repair public finances.

The country’s long-term rating was kept at B3, six levels below investment grade. The positive outlook signals that a downgrade is currently very “unlikely,’’ Moody’s said in a statement late on Tuesday.