S&P Upgrades Egypt to ‘B’ Amid Economic Reforms; Fitch Maintains Rating

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S&P Upgrades Egypt to ‘B’ Amid Economic Reforms; Fitch Maintains Rating

S&P Global has recently upgraded Egypt’s credit rating to ‘B’, reflecting the nation’s significant economic reforms. This upgrade is pivotal as it marks the first such increase since Egypt began receiving financial assistance in March 2024.

Fiscal Improvements and Economic Outlook

The upgrade comes amidst a notable rebound in Egypt’s GDP growth. According to S&P, robust reforms have significantly contributed to this revival. The efforts include a liberalized foreign exchange regime, which has positively impacted tourism and remittances.

GDP Growth: Egypt reported strong GDP growth, bolstered by economic reforms.
Tourism Recovery: From April to June 2025, tourism revenue surged by 20%.
Inward Remittances: Remittances from abroad increased by 36.5% during the same period.

Fitch Ratings’ Assessment

Fitch Ratings affirmed Egypt’s rating at ‘B’, emphasizing the country’s growth potential and established international support. Notably, Egypt’s inflation rate dropped significantly from a high of 38% in September 2023, thanks to an $8 billion bailout from the International Monetary Fund (IMF) initiated in March 2024.

Support from International Partners

S&P highlighted the strategic importance of Egypt, particularly enhanced by the ongoing conflict in Gaza. This situation has led to sustained financial backing from Gulf Cooperation Council members and other nations.

Fitch noted that while tensions with Israel have increased moderately, the collaboration in energy continues to progress. The overall outlook from both S&P and Fitch remains stable, indicating confidence in Egypt’s fiscal direction.

Future Economic Projections

S&P expressed optimism regarding Egypt’s fiscal consolidation, projecting that efforts under the IMF program will continue gradually through fiscal years 2025 to 2028. This includes maintaining a market-determined exchange rate to support sustained economic growth.

In contrast, Moody’s rating for Egypt remains at ‘Caa1’, although it has revised its outlook to ‘positive’ from ‘negative’ due to considerable bilateral support and necessary policy reforms.