Fitch Ratings has upgraded the Long-term Issuer Default Ratings (IDR) of the National Bank of Egypt, largest Egyptian bank, and Egypt-based Commercial International Bank, the country’s largest private bank to 'B' from 'B-' with “stable outlook.”
The upgrade from "B" from "B-" is a result of what the agency says are structural reforms the government has undertaken, including the reduction of fuel subsidies.
"Fuel subsidy cuts and tax hikes have been implemented as part of a clear five-year fiscal consolidation strategy," the agency said in a statement.
On 30 January 2013, when ousted president Mohamed Morsi was still in power, the agency cut Egypt's sovereign rating from "B+" to "B".
Shortly after Morsi's ouster on 3 July 2013 following nationwide mass protests against his rule, Fitch further downgraded Egypt's credit rating to "B-", citing political turmoil.