Finance minister hails fresh S&P credit rating for Egypt

CAIRO - 12 May 2018: Finance Minister Amr el-Garhi has welcomed Standard & Poor's Global Ratings' upgrading of Egypt's sovereign credit rating from B- to B.

In a press release on Friday, Garhi said the better rating with a stable outlook is a new step confirming that "we are on the right track, and represents a certificate of success of the Egyptian economic reform program."

"This decision will contribute to increasing the confidence in the ability and potential of the Egyptian economy and attract more foreign investments, as well as reducing the cost of finance available to the state and its institutions and the private sector," added the minister.

For upgrading Egypt to B with a stable outlook, S&P cited a strengthening economic growth and growing foreign exchange reserves.

"The liberalization of the currency regime on Nov. 3, 2016 has reduced external imbalances and boosted remittances and portfolio inflows, leading to higher foreign reserves," S&P said in a fresh report.

"Inflation has started to moderate, partly because of base effects but also reflecting the increasing effectiveness of the monetary framework".

It added that the reelection of President Abdel Fattah El Sisi for a second term represented a positive sign of the continuity of economic and financial reforms in Egypt.