CAIRO — An international credit rating agency has raised Egypt's credit outlook to positive from stable, citing progress in its ambitious economic reform plan backed by the International Monetary Fund.

In a Tuesday report, Moody's affirmed the country's long-term issuer rating at B3, six levels below investment grade. However, it said the positive outlook signals that a downgrade is "currently very unlikely."

It said "the substantial progress made by the government in implementing reforms agreed with the IMF has imparted a degree of financial stability not present earlier in the decade."

Egypt embarked on a reform program shortly after President Abdel-Fattah el-Sissi took office in 2014. The government has slashed subsidies, imposed a value-added tax and allowed a currency devaluation in order to qualify for a $12 billion bailout loan from the IMF.