S&P upgrades Egypt debt rating

NEW YORK: Ratings agency S&P upgraded Egypt’s debt grade by one notch on Friday, citing stronger economic growth and moderating inflation. S&P raised Egypt’s sovereign credit rating to ‘B’ from ‘B-’, which is still below investment grade but further up the scale. The ratings agency cited the improving economy, which is expected to average growth of 5.4% over the next four years, reflecting “a more broad-based recovery and a slight move away from consumption” towards greater investment and net exports.

Consumer price inflation fell to 13.3% year-on-year in March, the lowest level in nearly two years, the agency said. However, Egypt’s debt ratings remain constrained by large fiscal and external deficits, high public debt and low income levels.

Published in The Express Tribune, May 13^th, 2018.

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