Standard & Poor’s credit rating agency upgraded Egypt’s rating by one notch to ‘B’ from ‘B-‘ citing ongoing reforms that led to a sharp recovery in GDP growth, while its counterpart Fitch confirmed the country’s credit rating in light of relatively high growth potential and strong partner support.

Fitch last upgraded Egypt’s rating to ‘B’ in November 2024, when foreign investments and tighter monetary conditions helped build stronger financial resources. Meanwhile, Standard & Poor’s upgrade to ‘B’ is the first since Egypt began receiving financial support around March 2024.

Standard & Poor’s said on Friday evening that Egypt’s strategic importance was highlighted and raised due to the Gaza conflict, which was one reason Gulf Cooperation Council members and other countries continued to provide financial support to Cairo.

Fitch stated in its release, “We consider that risks from escalating tensions with Israel have only moderately increased in recent months, and energy cooperation is progressing.”

Egypt’s annual inflation rate fell from a record 38% in September 2023, supported by an $8 billion IMF bailout program in March.

Standard & Poor’s said in a statement, “Given stronger GDP growth prospects and increased revenues, alongside spending control and primary surplus targets linked to the IMF program, we expect continued fiscal consolidation, albeit gradually.”

It added that alongside the IMF program, the commitment to a market-determined exchange rate is expected to continue supporting Egypt’s GDP growth outlook and fiscal consolidation efforts over fiscal years 2025-2028.

In the quarter from April to June 2025, Egypt’s tourism revenues rose 20%, indicating a strong recovery from the COVID-19 pandemic impact, while remittances from Egyptians abroad increased by 36.5%, another major source of foreign currency.

According to Standard & Poor’s, reforms implemented over the past 18 months, including foreign exchange system liberalization, led to the sharp GDP growth recovery and boosted tourism and remittance inflows.

Both agencies maintained their outlook on Egypt as “stable.”

Meanwhile, Moody’s kept Egypt’s rating at “Caa1” since October 2023, although it revised its outlook to “positive” from “negative” in March 2024, following significant bilateral support and policy changes.