Egypt’s Outlook Raised by Fitch After $57 Billion Global Bailout - Bloomberg

Egypt’s Outlook Raised by Fitch After $57 Billion Global Bailout - Bloomberg

Egypt’s credit rating outlook was raised to positive from stable by Fitch Ratings, after the North African nation secured an international bailout of $57 billion for its cash-strapped economy.

Fitch affirmed Egypt’s B- rating, leaving it six notches below investment grade. It also came weeks after authorities agreed to a landmark $35 billion investment deal with the United Arab Emirates and additional support from the International Monetary Fund and the World Bank.

“Near-term external financing risks have markedly reduced” thanks to the UAE deal, Fitch said in a statement. “The move to a flexible exchange rate and the tightening of monetary policy” have also helped, the ratings company added.

Those investment pledges and a jumbo interest-rate hike allowed Egypt to let its currency devalue, as part of the country’s efforts to mitigate one of its worst foreign-exchange shortages in decades.