Standard & Poor’s (S&P) Global Ratings affirmed on November 9 the “B/B” long- and short-term foreign and local currency sovereign credit ratings on Egypt with a stable outlook, reflecting the potential of raising the country’s rating next year, Invest-Gate reports.

Egypt’s growth prospects remain strong, underpinned by the implementation of fiscal and economic reforms, according to a report published by S&P, which added that “a more competitive exchange rate, improving macro fundamentals, and rising domestic gas production are helping to reduce Egypt’s external imbalances.”

S&P also said that fiscal challenges remain considerable, adding that it foresees net government debt levels to gradually drop.

The credit agency predicts that Egypt’s current rating will potentially raise its rating in 2019, but only “if larger-than-anticipated improvements in the current account position sharply reduce Egypt’s external financing requirements and external debt levels, and if Egypt’s reform program significantly reduces government debt.”

In addition to a strong economic growth averaging 5.4% over the next three years, driven by a climbing contribution from net exports and investment, the inflow of foreign direct investment would average 2.6% of GDP for FY 2019/20, S&P stated.

Commenting on the rating move, Finance Minister Mohamed Maait said it represents “an important evidence on the success of the Egyptian economic reform program and the improvement of the country’s economic indices.”

Maait underlines that the report “will contribute to raising the confidence of the global institutions and the international investment community in the Egyptian economy, a move that will lure more investments.”

Back in May, S&P raised Egypt’s sovereign credit rating to “B” from “B-,” while lowering its outlook to “stable” from “positive.”