Fitch raises Egypt outlook to Stable over Gulf aid, calmer political scene

Fitch raised the outlook to stable from negative on Egypt’s B- rating on Friday, citing financial assistance from Gulf countries and a calmer political situation.

The rating agency had earlier cut Egypt’s credit rating to B-minus from B on July 5, 2013, then raised it to B-minus from CCC-plus on November last year, saying that the country had secured sufficient foreign currency funding for its short-term fiscal and external financing needs.

Moody’s downgraded Egypt’s credit rating to Caa1 from B3 in March 2013 and gave it a negative outlook, citing unsettled political conditions and an increased risk of default.

In other countries, Moody’s downgraded Jordan’s rating by two notches to B1 from Ba2 with a stable outlook on June 2013, citing a deterioration in the country’s public finances since 2009 due to a combination of lower economic growth and external shocks, with rising debt levels as a percentage of GDP.

Standard and Poor’s lowered Jordan’s sovereign credit rating to BB-minus from BB with a negative outlook on May 20, 2013, citing higher external and budget liabilities.