Moody’s raised Egypt’s long-term issuer rating from Caa1 to B3 and retained a positive outlook, citing fiscal consolidation and structural reforms. The agency pointed to a larger primary surplus and lower public debt. Egypt’s finance ministry pledged to accelerate reductions in debt service costs, while the country’s foreign reserves reached $57 billion in September.
Moody’s Ratings, the credit-rating agency, raised Egypt’s long-term issuer rating from Caa1 to B3 and retained a positive outlook. It cited continuing fiscal consolidation and structural economic reforms. Egypt’s finance ministry welcomed the upgrade and said bringing down high debt service costs faster remained a priority for further reforms.[1], [2]
In the agency’s assessment, revenue measures, spending restraint and adjustments to energy prices helped lift the primary fiscal surplus to 4.9% of gross domestic product in fiscal 2026. That measure excludes interest payments. Public debt fell to 81.8% of GDP in June, compared with 95.2% three years earlier.[1]
Official reserves rose to $57 billion in September. Moody’s credited exchange-rate flexibility and tight monetary policy with eliminating chronic foreign-currency shortages. Recovering tourism receipts and remittances offset lower Suez Canal income and a wider hydrocarbon trade deficit. Its positive outlook reflects the possibility that debt and borrowing costs fall faster than its baseline projections.[1]
Further improvement in the agency’s assessment also depends on state asset disposals and recoveries in domestic energy production and canal traffic.[1]
