Standard & Poor’s Ratings Services (S&P) has downgraded its outlook for Egypt’s sovereign credit to stable from positive and kept the current rating at B-.
S&P says that the stable outlook reflects that the country will largely remain politically stable and its economy will continue to grow gradually, reports Egypt-based Veto Gate.
It adds that Egypt’s ratings remain constrained by large fiscal deficits, high domestic debt and low levels of income.
The international rating agency predicts that overall political stability will support the economy and that the growth of fiscal deficit and domestic debt levels will remain high in the period between 2015 and 2018.
“The economic recovery is supported by improved political conditions, a recovery in construction, manufacturing, services and tourism,” it says.
It also expects Egypt to continue to benefit from overseas workers’ remittances and foreign investments.
According to Reuters, Saudi Arabia, Kuwait, the UAE and Oman jointly pledged $12.5 billion in aid, investments and central bank deposits at a March investment conference in Egypt’s resort town of Sharm el-Sheikh.
($1 = AED3.67, at the time of publishing)