Moody's upgrades Egypt's banking system rating
It raised the outlook from 'negative' to 'stable'.Credit ratings agency Moody's upgraded its outlook for the Egyptian banking system from 'negative' to 'stable' on Wednesday (July 15th).
It said in a statement it anticipates that banks' funds and liquidity positions will remain strong within the next 12 to 18 months.
"We expect that Egypt's banking system will benefit from improved operating conditions, resulting in rising consumer confidence and business investments, which in turn will support loan growth and asset quality", said Melina Skouridou, Moody's lead analyst for Egyptian banks.
She added that Moody's expects Egyptian banks' deposit-based funding structure to continue to grow.
The economic outlook since the July 2014 Presidential election looks optimistic. According to the rating agency's forecasts, Egypt's economy should grow by five per cent this year, boosted by large government-led infrastructure projects, increased foreign investment, and a rise in tourism.
According to the African Development Bank's 2015 African Economic Outlook report, the successful outcome of the March Egypt Economic Development Conference secured over USD 60 billion worth of investments, loan agreements and grants and reinforced the government’s commitment to continue the structural reforms and promote inclusive growth and restore back investor confidence.