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FINANCIAL NEWS
Moody’s raised Egypt’s credit outlook to stable on improved economic growth
21 Oct 2014
(MENAFN) Moody’s boosted Egypt’s credit outlook to stable from negative, accomplishing a more stable political and security situation and signs of economic recovery, Gulf Times reported.
It refrained from upgrading the credit rating, keeping it at Caa1, still one notch below Standard & Poor’s, saying government finances are still too weak.
Moody’s said that government initiatives and reforms launched over the past year, including plans to phase out fuel and electricity subsides, and measures to lift public revenues by shifting to value-added tax system from a goods and services tax, had improved the outlook.
The upgrade to the credit outlook may help restore confidence in an economy hammered by political turmoil that has weighed on investment and tourism for nearly four years.
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