From Allafrica · · 1m
Egypt Credit Rating Upgrade
Moody's raises Egypt's sovereign credit rating to B3 as debt falls and reserves rise.
In brief
Moody's raises Egypt's sovereign credit rating to B3 as debt falls and reserves rise. Moody's upgraded Egypt's sovereign credit rating to B3 from Caa1 due to improved government finances, lower debt, and stronger foreign exchange reserves. Originally reported by Allafrica.
Moody's Upgrades Egypt's Rating
Moody's upgraded Egypt's sovereign credit rating by one notch to B3 from Caa1.
Improved Government Finances
Egypt recorded a primary budget surplus of 4.9% of GDP in fiscal year ended June 2026.
Public Debt Declines
Public debt fell to 81.8% of GDP in June 2026 from 95.2% in 2023.
Tax Revenue Increases
Tax revenue rose to 13% of GDP supported by compliance measures and expanded tax base.
Foreign Exchange Reserves Rise
Net international reserves reached $57 billion in September 2026 compared with $52 billion at end of 2025.
Monetary Policy Changes
Egypt adopted flexible exchange rate in March 2024 and tightened monetary conditions.
Debt Servicing Concerns Remain
Interest payments account for 59% of government revenue limiting funds for public services.
The one thing
Moody's upgraded Egypt's sovereign credit rating to B3 from Caa1 due to improved government finances, lower debt, and stronger foreign exchange reserves.
