Egypt’s credit profile received a major boost after S&P Global Ratings upgraded the country’s long-term sovereign rating to ‘B’ from ‘B-’, citing stronger economic performance and steady progress on reforms backed by the International Monetary Fund. The agency maintained a stable outlook, reflecting renewed investor confidence and improved policy coordination, as reported by Reuters.
According to S&P, Egypt’s upgrade was driven by a rebound in GDP growth, disciplined fiscal management, and higher government revenues under the reform framework. The agency noted that liberalization of the foreign exchange market and a market-determined exchange rate have strengthened macroeconomic stability, helping the country recover from previous external imbalances.
In a separate move, Fitch Ratings affirmed Egypt’s sovereign rating at ‘B’ with a stable outlook, emphasizing the nation’s robust growth potential and continued external financing support, as highlighted by Investing.com. Fitch, however, warned that fiscal pressures, particularly from interest costs and public debt, still pose challenges to long-term stability.
Analysts believe the twin assessments signal renewed optimism for Egypt’s reform trajectory. The S&P upgrade, experts say, could lower borrowing costs, attract foreign investment, and support the government’s efforts to sustain growth through structural reforms and prudent fiscal policies.
