Egypt succeeded in reversing the external debt curve, to record a decline for the first time in more than 4 years.
Turkey's deteriorating conditions are the reason.
Egypt was the only country in the Middle East and Africa, whose credit rating was maintained with a stable outlook by S&P Global Ratings, Moody's and Fitch, Ma'it said.
Fitch expected real GDP growth to be 2.5 percent in the fiscal year ending June 2021 (FY21), well below average growth of 5.5 percent in FY18 and FY19.
Assistant Prime Minister Usama Gohar said that recent developments in Egypt contributed to improving the outlook of Fitch reports about the Egyptian market.
Fitch clarified Monday that Egypt's ratings are supported by a recent track record of economic and fiscal reforms, and improvements to macroeconomic stability and external finances.
Fitch said that pent-up private sector credit demand was high thanks to robust economic growth, expecting GDP growth of 5.5% in 2019 and in 2020.
The institution said in a statement that it takes pride in transferring its knowledge and solutions to the Egyptian financial sector to further enhance the advancement of financial professionals.
Fitch attributed the ratings to progress achieved in executing the economic and fiscal reform program, greater macroeconomic stability and improving external finances.
The Central Agency for Public Mobilization and Statistics (CAPMAS) announced that annual consumer price inflation slipped to 13.8 percent in June 2018.
A wrap-up of the most prominent business news of the day
Fitch anticipated in a report that the Central Bank of Egypt will cut rates further this year (another 200-300bps).
The bank’s profit dropped by 47.3 percent in the first nine months of 2017.
The Qatari ambassador to Venezuela, Batal Mojab al-Dosari, said on Friday.
Qatar’s GDP growth is forecasted by Fitch to fall to 2 percent in 2017, 1.3 percent in fiscal year 2018/19, down from 2.2 percent in 2016.
Arab boycott of Qatar will increase banks' financing costs in the international debt markets, Fitch said.
S&P Global will consider changing Egypt’s credit rating if economic growth rate exceeded expectations, analyst says.
Diplomatic rift between Qatar, Saudi Arabia, UAE, Bahrain and Egypt is not anticipated to resolve over the short term.