Moody’s Investors Service, a leading credit rating agency, has changed the outlook Egypt’s long-term issuer ratings to positive from stable and has affirmed the B3 issuer ratings, Invest-Gate reports.

Moody’s has also affirmed Egypt’s senior unsecured ratings at B3, and its senior unsecured MTN program rating at (P)B3, according to a press statement.

The change in the outlook reflects the country’s continuing structural improvements in the fiscal and current account balances, resulting from the ongoing implementation of the reform program backed by the International Monetary Fund (IMF).

“Moreover, early signs of business environment reforms offer the prospect of a sustainable, inclusive growth path capable of improving competitiveness and absorbing the country’s rapidly expanding labor force,” Moody’s noted.

The agency’s decision to affirm the B3 rating balances Egypt’s longstanding strengths against the low-probability risk of sudden political upheaval, and fiscal weakness reflected in a high debt burden, low debt affordability and very large annual financing needs.

“In turn, such fiscal weakness creates high refinancing exposure in an increasingly turbulent global financial environment, notwithstanding a deep and stable domestic funding base in its large banking sector,” according to Moody’s.