S&P revises Egypt outlook to stable on likely support from IMF

Reuters , Friday 11 Nov 2016

Global rating agency Standard and Poor's (File photo: Reuters)

Nov 11 Standard & Poor's (S&P) Global Ratings:

* S&P revises Egypt sovereign credit outlook up to stable from negative; current rating is B-

* Ratings on Egypt remain constrained by "wide fiscal deficits, high public debt, low income levels, and institutional and social fragility"

* Project that Egypt's real GDP growth will exceed 4 percent by 2019

* Increase in Egypt's inflation in near term on currency devaluation, subsidy cuts on top of interest rate hikes to weigh on domestic consumption

* Revised Egypt's outlook to reflect balance between long-standing external, fiscal vulnerabilities among other factors

* Stable outlook balances Egypt's external, fiscal vulnerabilities, against likely IMF support after government's upfront delivery on program reforms

* Anticipate Egypt's economic growth will start recovering in 2018-2019, fueled by domestic consumption and investments

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