Egypt: S&P upgrade, with help from friends | beyondbrics

Egypt: S&P upgrade, with help from friends | beyondbrics:

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A bit of good news for Egypt: rating agency Standard and Poor’s upgraded the country’s credit rating on Friday on foreign long-term borrowings to ‘B-’ from ‘CCC+’.

In other words, Egypt is considered as now having the capacity to meet its financial oblogations, as opposed to being “vulnerable”. Up is the way to go.

What’s changed? Well, S&P seems impressed enough by the support of Middle East donors – the GCC countries. It said “The upgrade reflects our view that the Egyptian authorities have secured sufficient foreign currency funding to manage Egypt’s short-term fiscal and external financing needs. We expect support from bilateral lenders to continue over the medium term as the Egyptian authorities try to address the country’s political and economic challenges.”"

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