Economists comment on S&P's Egypt credit rating outlook upgrade

A number of economists and experts commented on Standard and Poor's Ratings Services' decision to revise its outlook on Egypt's credit rating to positive from stable, saying it sends a message of reassurance to foreign investors.

The rating revision will help pump more investments in the coming period, the experts said.

"The rating action reflects our view of Egypt's gradual economic recovery, supported by improving, albeit still fragile, political stability, alongside policymakers' commitments since 2014 to embark on economic reforms," said S&P in a press release.

"These include subsidy and income tax reforms, a new law on investment, and the announced value-added tax (VAT) system on goods and services. In addition, we expect some Gulf states will continue to provide the Egyptian Government with sufficient foreign currency funds to manage the country's short-term fiscal and external financing needs," it added.

Economic analyst Ahmed Hamdy said the rating revision by S&P is the fourth upgrade by international assessment institutions in the past period.