Moody’s upgrades outlook on Egypt’s banking system to ‘positive’ from ‘stable’

Moody’s upgrades its outlook on the Egyptian banking system to ‘positive’ from ‘stable.’ Structural reforms in Egypt have created an environment of “sustainable and inclusive growth” that has helped improve overall operating conditions for banks, the ratings agency said yesterday. Moody’s sees banks maintaining strong credit growth and profitability, as well as strong funding, liquidity, and loan profiles in the coming period. Supporting its vision are expectations that GDP growth levels will hit 5.5% in 2019, up from 4.2% in 2017,as economic conditions continue to improve as the result of ongoing reforms, “increased domestic private sector investment, large infrastructure projects, as well as higher exports,” Moody’s Assistant Vice President Melina Skouridou said.