S&P Global Ratings Upgrades Egypt’s Credit Rating: A Testament to Economic Resilience and Reform

H.E. Mr. Hassan Abdalla, Governor of the Central Bank of Egypt (CBE), welcomed S&P Global Ratings’ decision to upgrade Egypt’s sovereign credit rating. He emphasized that this move reflects the growing confidence in the Egyptian economy, driven by the monetary and structural reforms implemented in recent months.

Mr. Abdalla stated that the unification of the exchange rate regime represented a pivotal step toward enhancing market stability. He added that the improvement in external sector indicators, coupled with the increase in foreign exchange reserves, confirms the effectiveness of the economic policies pursued by the government and the Central Bank.

S&P Global Ratings: First Upgrade in Seven Years

On Friday, S&P Global Ratings upgraded Egypt’s long-term sovereign credit rating from “B-” to “B” with a stable outlook—marking the first upgrade in seven years.
The agency explained that this decision reflects the positive impact of reforms undertaken over the past 18 months by the Egyptian Government, including the liberalization of the foreign exchange (FX) regime. These efforts have led to a strong rebound in GDP growth during fiscal year 2025.

S&P also highlighted that Egypt’s transition to a flexible exchange rate regime has contributed to stronger growth, supported by rising tourism revenues, worker remittances, and net financial inflows, which collectively strengthened the country’s external position.

Commitment to Sustainable Economic Growth

Governor Abdalla reaffirmed the Central Bank’s commitment to implementing sound monetary policies aimed at curbing inflation and maintaining financial stability, thereby ensuring sustainable economic growth.
He noted that these measures continue to boost investor confidence and enhance the credibility of Egypt’s economic reform agenda in the eyes of international institutions and global markets.

Fitch Ratings Confirms Egypt’s Stable Outlook

In a related development, Fitch Ratings affirmed Egypt’s long-term foreign-currency rating at “B” with a stable outlook. This affirmation reflects Egypt’s resilient economic growth, strengthening external position, and advancing fiscal reforms, despite ongoing regional and global challenges.