Fitch: Egypt’s Long-Term Foreign Currency Issuer Default Rating Affirmed at B+; Stable Outlook

Egypt’s Long-Term Foreign Currency Issuer Default Rating (IDR) has been affirmed at B+ by Fitch Ratings (Fitch), with a Stable Outlook.

The rating and Outlook is backed by Egypt’s recent track record of fiscal and economic reforms, along with policy commitment to further strengthen the reform program. In addition, Fitch notes that the readily available fiscal and external financing to support the COVID-19 pandemic has also contributed to the B+ rating.

Fitch notes that the ratings are constrained by still large fiscal deficits, high levels of general government debt to gross domestic product (GDP), as well as weak governance scores based on the World Bank governance ind...