Fitch Affirms Egypt's Credit Rating at B+ with Stable Outlook

Fitch affirmed the credit rating of Egypt at "B+" with a stable outlook.

The credit rating agency stated on Wednesday that the continuation of economic growth and the support package related to the coronavirus have limited the impact of the pandemic on the Egyptian public finances, thanks to the recent reforms undertaken by the government, as well as the large size of its economy, which showed resilience and stability during the global health crisis.

The agency stated that the pandemic has hampered Egypt's two-year efforts to reduce debt, pointing out that public finances remain a weakness that casts a shadow on the country's credit rating, expecting that the debt-to-GDP ratio will start declining starting from FY2022.

It noted the flexibility of financing that Egypt enjoyed, and external financing conditions remained broadly favorable.

The agency indicated that the Egyptian economic growth outperformed most countries in the midst of the pandemic, supported by the resilience of domestic demand, gas production and investment in the public sector, in light of the decline in tourism and export-related sectors.