Moody’s Ratings, one of the world’s major credit-rating agencies, has upgraded Egypt’s long-term credit rating to B3 from its previous level, maintaining a positive outlook as the country makes progress on economic reforms, strengthens its foreign currency reserves, and works to reduce government debt.
The Egyptian Cabinet announced the upgrade on Saturday, 17 October, saying the decision reflects improvements in the country’s economic performance and its ability to meet its financial obligations. Moody’s also upgraded its ratings for Egypt’s foreign-currency unsecured debt.
What led to the upgrade?
According to Moody’s, Egypt’s progress in controlling government spending, increasing tax revenues, and introducing economic reforms has helped improve public finances.
The shift toward a more flexible exchange rate and tighter monetary policies has also helped strengthen foreign reserves and make the economy more resilient to external economic shocks.
Moody’s added that continued financial discipline and further reforms could help Egypt reduce its government debt and interest payments faster than expected. This is one of the main reasons the agency maintained a positive outlook.
The Ministry of Finance highlighted several economic indicators that supported the upgrade, as government debt fell to 81.9 percent of gross domestic product (GDP) in June 2026.
These improvements suggest that Egypt is making progress in strengthening its finances and building its ability to handle global economic challenges.
What does the positive outlook mean?
A positive outlook means Moody’s sees the possibility of further improvements in Egypt’s credit rating if the country continues implementing reforms and maintains control over public spending and debt.
The Ministry of Finance said the government will focus on boosting productivity, supporting local production, and increasing exports to help achieve stronger and more sustainable economic growth.
The government also plans to introduce measures that encourage private investment, improve the business environment, simplify procedures, and strengthen competition.
