Fitch maintains Egypt's rating at B+; outlook stable

The rating is backed by the country's "recent record of fiscal and economic reforms, which the authorities are continuing, as well as its large economy, which has demonstrated stability and resilience through the global health crisis," the international credit rating agency said in a statement on Wednesday.

However, the rating is weighed down by the large fiscal deficits, high government debt to gross domestic product (GDP) ratio, and domestic and regional security and political risks.

The government support packages in the face of the COVID-19 crisis has limited the impact of the pandemic on public finances, the statement showed.

According to Fitch, the country's overall deficit is expected to narrow in fiscal year (FY) 2021/2022 with the help of revenue measures, such as the customs law, fee revisions, and modernisation of the tax system.

Egypt's economy is forecast to grow by 5.5% in FY21/22 and FY22/23 on the back of global economic recovery and the resumption of tourism to the country, especially after Russia ended its six-year ban on flights to the Red Sea resorts.