Moody’s Investors Service has kept Egypt’s credit profile at “B2 stable,” with a stable outlook underpinned by the country’s economic strength, Invest-Gate reports.

In its announcement of periodic review on December 14, Moody’s said the “relatively weak but improving” governance indicators are balanced out by institutional and governance strength, along with Egypt’s “solid track record” of commitment to implementing reforms.

Meanwhile, the rating agency emphasized that fiscal strength reflects weak public finances with a high, albeit declining government debt burden after a temporary pandemic-related increase, and very low debt affordability.

While the likelihood of social upheaval is low, Moody’s found that the North African country is still exposed to banking sector risks due to its large banking system and population. But such uncertainties remain well mitigated by the local market’s stable funding structure, large liquidity buffers, and resilient loan performance.

In September, Moody’s had indicated Egypt’s creditworthiness has proven “broadly resilient” to external financing shocks despite high exposure, according to a previous report. Back then, the country was on track for an upgrade by the agency, yet still pending “a marked improvement in debt affordability and reduction in gross financing needs.”