S&P keeps Egypt's credit rating at B with stable outlook for 2nd time in 2020

CAIRO – 7 November 2020: Minister of Finance Mohamed Mait stated Saturday that Standard and Poor's has kept Egypt's credit rating at B with stable outlook for the second time in a row in 2020 as the last rating was issued in April.

The minister stated the move reflects an international confidence in the stability and solidity of the Egyptian economy as well as its ability to positively handle the repercussions of COVID-19 and absorb any subsequent shocks.

Mait attributed the resilience of the Egyptian economy to the economic reform program the country embarked on in 2016 with the aim of improving the business environment.

In FY2019/2020, Egypt's economy grew by 3.6 percent, while the S&P's report speculates that it will rise by 2.5 percent in FY2020/2021 and 5.4 percent in FY2021/2022 along with the recovery of the sectors of tourism, energy, and manufacturing as well as structural reforms.

Deputy Finance Minister for Fiscal Policies and Institutional Development Ahmed Kojek said that the Egyptian economy is estimated to grow by 5 percent on the medium-run.

Kojek added that the debt-to-GDP ratio is expected to decline, while a primary surplus of two percent is speculated to take place in the current fiscal year. The primary surplus achieved in the last fiscal year is 1.8 percent of Egypt's GDP.

The deputy minister asserted that working towards the completion of reforms can guarantee raising Egypt's credit rating on the medium-run.

The bundle of emergency measures undertaken by the state is worth two percent of the GDP, Kojek pointed out.