Fitch Ratings upgrades Egypt's outlook to positive

The leading global credit rating agency, Fitch Ratings, has revised Egypt's Long-Term Foreign-Currency (LTFC) outlook from Stable to Positive. The move comes amid a series of economic reforms undertaken by Egypt in recent months. These included a reduction in near-term external financing risks, attributed to the Ras El-Hikma deal with the United Arab Emirates (UAE), the adoption of a flexible exchange rate, and tighter monetary policies. The Ras El-Hikma deal is worth some $35 billion USD and Fitch confirmed the added value as “a portion of existing UAE foreign currency deposits has been converted to local currency deposits, easing Egypt's external debt burden.”