Moody's Upgrades Egypt's Credit Rating to B3

Moody's Ratings upgraded Egypt's long-term issuer credit rating from Caa1 to B3 while maintaining a positive outlook. The rating upgrade was driven by ongoing fiscal consolidation and structural economic reforms that have put public debt metrics on a downward trend.

In a statement by Moody's, it was stated that the fundamental factor behind the rating upgrade was economic reforms. As a result of the regulations, the primary surplus rose to 4.9% of GDP in the 2026 fiscal year, with revenue-enhancement efforts, spending curbs, and energy price adjustments playing an effective role in this process. Total public debt fell to 81.8% of GDP in June 2026, whereas three years ago this ratio stood at 95.2%.

The transition to a flexible exchange rate regime and the implementation of tight monetary policy eliminated the chronic foreign exchange scarcity. Following these steps, official reserves reached $57 billion as of September 2026. Despite regional geopolitical developments and high global oil prices, no serious erosion occurred in the reserves, while a recovery was observed in tourism and remittance revenues.