'Fitch' maintains Egypt's credit rating at 'B' with a stable outlook

Arabic - Fitch Ratings affirmed Egypt’s long-term foreign-currency sovereign credit rating at ‘B’ with a stable outlook, noting that the assessment reflects a mix of positive factors, most notably the relatively high growth potential of the Egyptian economy, continued support from bilateral and multilateral partners, and the large size of the economy compared with countries rated in the same category.

The agency added in a report that these positive factors are still offset by structural challenges, including weak public finances, debt service burdens at exceptional levels relative to government revenues, large external financing needs, high inflation rates, and geopolitical risks facing the country.

Fitch pointed to an improvement in Egypt’s external indicators this year, with total international reserves rising by about $5.5 billion during the first eight months of 2026 to reach $54.4 billion. Net foreign assets of the central bank also rose to $19 billion in August, an increase of $5.6 billion. Meanwhile, net foreign assets of the banking sector remained stable at $12.6 billion, reflecting the economy’s ability to finance the current account deficit through foreign direct investment inflows and external borrowing.

The agency noted that the flexible exchange rate regime passed a significant test amid the fallout from the war in Iran, as Egyptian authorities maintained currency convertibility without imposing broad restrictions on foreign exchange, thereby supporting the credibility of monetary policy.

Fitch estimated the current account deficit at 5.1% of GDP in the 2025-2026 fiscal year, up from 4.2% in the previous year, driven by higher energy import bills and a deterioration in the trade balance. On the other hand, a 10% growth in tourism revenues and an 18% rise in remittances from Egyptians working abroad helped contain the widening of the deficit.