Moody's upgrades Egypt's credit rating to B3

Moody's Ratings has upgraded Egypt's long-term sovereign credit rating from Caa1 to B3, maintaining a positive outlook. The upgrade is driven by tangible progress in fiscal consolidation, structural economic reforms, and improved economic resilience against external shocks.

Key factors contributing to the decision include the stabilization of the exchange rate through a flexible regime, tighter monetary policies, and the strengthening of foreign exchange reserves, which reached approximately $57 billion by September 2026. The agency highlighted a strong track record of primary budget surpluses, which rose to 4.9 percent of GDP in the 2026 fiscal year.

Government debt has also seen a significant decline, dropping to 81.8 percent of GDP in June 2026 from 95.2 percent in June 2023. Moody's expects the Egyptian government to maintain fiscal discipline and continue its reform trajectory even after the current International Monetary Fund program concludes in December 2026.

Further economic improvements are contingent upon potential divestments under the State Ownership Policy and a recovery in domestic energy production and maritime traffic.