Egypt credit rating affirmed at ‘B’ by Fitch Ratings

Fitch Ratings has affirmed Egypt’s sovereign credit rating at ‘B’ with a stable outlook. The agency noted that the rating reflects Egypt’s significant economic growth potential and support from international, bilateral, and multilateral partners.

Egypt’s international reserves improved by approximately $5.5 billion during the first eight months of 2026, reaching roughly $54.4 billion. This increase, alongside foreign investment inflows and external financing, has strengthened the economy’s ability to fund external needs and cover the current account deficit.

While the flexible exchange rate system faced pressure due to regional conflicts, resulting in over $6 billion in hot money outflows and a 14% depreciation of the pound against the dollar, rapid foreign inflows helped the currency recover. Fitch expects the current account deficit to widen to 5.1% of GDP in fiscal year 2026 due to higher energy import costs, but anticipates it will gradually decrease to below 3.5% by fiscal year 2028, supported by tourism and improved trade balances.