S&P Global Ratings has upgraded Egypt’s long-term sovereign credit rating by one notch to ‘B’, citing sweeping economic reforms and a sharp rebound in growth supported by international assistance.
Fitch Ratings, meanwhile, affirmed its own ‘B’ rating for the country, maintaining a stable outlook while highlighting Egypt’s robust growth potential and sustained support from key partners.
S&P’s upgrade, its first since Egypt began receiving large-scale financial aid in March 2024, reflects improving economic indicators underpinned by the government’s reform agenda and the $8 billion International Monetary Fund (IMF) bailout program.
The IMF package, alongside exchange rate liberalization and tighter fiscal management, has stabilized Egypt’s finances and helped cool inflation, which has dropped from a record 38% in September 2023.
“Given the stronger GDP growth prospects, increased revenue alongside expenditure control, and primary surplus targets tied to the IMF program, we expect fiscal consolidation to continue, albeit at a gradual pace,” S&P said in a statement.
The agency noted that Egypt’s strategic importance has grown amid the Gaza conflict, prompting sustained financial backing from Gulf Cooperation Council (GCC) members and other international partners.
Fitch added that while regional tensions had risen, the risk of escalation with Israel “has increased only moderately,” and that energy cooperation projects were progressing.
Both agencies credited Egypt’s structural reforms, including the move toward a market-determined exchange rate and improved business climate, for restoring investor confidence.
According to S&P, GDP growth has rebounded sharply, aided by surging tourism revenues, up 20% in the April–June 2025 quarter, and a 36.5% rise in remittances from Egyptians abroad.
Fitch last upgraded Egypt’s rating in November 2024, when stronger foreign investment inflows and disciplined monetary policy improved the country’s external position.
Moody’s, meanwhile, has maintained Egypt’s rating at ‘Caa1’ since October 2023 but revised its outlook to ‘positive’ in March 2024, citing major policy shifts and enhanced bilateral support.
Both S&P and Fitch said they expect Egypt’s fiscal and external metrics to keep improving through 2025–2028, provided the reform momentum and IMF-backed fiscal discipline continue.
Source: Reuters
Written By Rodney Mbua
