Fitch upgrades Egypt to B

Fitch Ratings said it upgraded Egypt's long-term foreign and local currency issuer default ratings to B from B-.

The outlooks are stable.

The agency also upgraded the issue ratings on Egypt's senior unsecured foreign and local currency bonds to B from B-. The country ceiling was upgraded to B from B- and the short-term foreign currency issuer default rating was affirmed at B.

Fitch said the upgrade reflects that the Egyptian government has embarked on a policy course designed to tackle some of the serious structural weaknesses that have emerged or intensified in recent years. Fuel subsidy cuts and tax hikes have been implemented as part of a clear five-year fiscal consolidation strategy. Power shortages are being tackled, overdue payments to oil companies reduced, investment laws revised and disputes with foreign investors settled. The measures appear to have strong political backing, the agency said.

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