Kouchouk: S&P upgrades Egypt’s sovereign rating for the first time in seven years, while Fitch affirms last year’s upgrade with a stable outlook

Minister: Economic and fiscal reforms have gained strong recognition from investors, markets, and international institutions — we remain committed to consistency and continuity in reform to enhance growth and competitiveness.

 

Finance Minister Ahmed Kouchouk affirmed that the Standard & Poor’s (S&P) decision to raise Egypt’s sovereign credit rating from “B-” to “B” for the first time in seven years, alongside Fitch Ratings’ decision to maintain its recent upgrade with a stable outlook, reflects international recognition of the credibility and positive impact of Egypt’s ongoing economic reforms and the government’s commitment to sustaining the national reform agenda.

 

Kouchouk noted that the implemented reforms and achieved economic results — including the resilience and strong response of the private sector — have become a focus of attention and appreciation for investors, global markets, and international financial institutions. He added that global rating agencies have started to upgrade Egypt’s assessments and adopt a more optimistic outlook, which is translating into improved creditworthiness for the Egyptian economy.

 

He stressed that Egypt continues to address challenges and pursue reforms in a consistent and integrated manner to support growth and competitiveness, noting that continued reform and coherent policies will ensure sustained stability and further improvements in citizens’ living standards, while enhancing Egypt’s international competitiveness.

 

Kouchouk described the positive rating actions as a strong vote of confidence in the government’s reform efforts, reinforcing trust in Egypt’s development trajectory and confirming the effectiveness of the national reform program aimed at achieving macroeconomic stability, competitiveness, and attracting local and foreign investments.

 

Deputy Minister Yasser Sobhi: Investor Confidence and Lower Borrowing Costs

Deputy Minister for Fiscal Policies Yasser Sobhi stated that local and international circles are increasingly recognizing Egypt’s improving economic performance, which has already contributed to lower financing costs in international issuances and a growing appetite from both local and foreign investors for direct investments and Egyptian financial instruments.

 

He added that the improved credit rating allows for a broader investor base and reduced risk premiums, paving the way for sustained positive growth momentum in the medium term.

 

Advisor Alaa Abdel Rahman: Continuous Engagement with Global Institutions

Alaa Abdel Rahman, Advisor to the Minister for International Financial Institutions, highlighted that the Ministry of Finance maintains continuous engagement throughout the year with international financial institutions, development banks, and credit rating agencies. The ministry ensures transparency and timely communication of all fiscal and economic policy developments, provides supporting data, and responds to inquiries, to underscore the positive progress of the Egyptian economy — contributing to favorable evaluations by global institutions.

 

Both Standard & Poor’s and Fitch Ratings based their decisions on the continuation of structural reforms, a flexible exchange rate regime, rising foreign direct investment inflows, improved external indicators, fiscal discipline, and a large primary surplus of 3.6% in the last fiscal year. They also cited reduced public debt, growth acceleration to 4.4% in 2025 (up from 2.4% in 2024), and over 70% growth in private investment, alongside a 35% rise in tax revenues achieved without imposing additional burdens, thanks to recently implemented tax facilitation measures.

Advisor Alaa Abdel Rahman

Deputy Minister Yasser Sobhi