Fitch Revises Egypt's Outlook to Positive

Fitch Ratings changed Egypt’s Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) rating outlook to positive from stable and affirmed the debt grade at ‘B-’, citing reduced external financing risks and stronger foreign direct investment.

Fitch revealed the recent investment deal with the United Arab Emirates (UAE), a shift to a more flexible exchange rate regime, and tighter monetary policy have unlocked additional financing from international institutions, with the USD 35bn investment deal with the UAE. The agreement will bring USD 24bn of fresh foreign currency inflows in the FY24 ending June 2024.

These factors have also helped attract sizeable non-resident inflows to Egypt’s domestic debt market.

Standard & Poor's credit rating for Egypt stands at B- with a positive outlook.

Moody's credit rating for Egypt was last set at Caa1 with a positive outlook.