Standard & Poor's affirmed Egypt's credit rating at "B/B" and kept a stable outlook, noting that Egypt continues to benefit from strong external support on concessional terms.

The agency expects Gulf Cooperation Council member states to keep providing financial support to Egypt despite the conflict in the region, while it considers a follow-up arrangement with the International Monetary Fund unlikely.

On risks, Standard & Poor's said an escalation of the regional conflict, and the energy prices staying higher for longer that could follow, may worsen inflationary pressures.

On domestic financing, the agency said Egypt's banking system is a stable and reliable source of local-currency funding for the government.