Standard & Poor’s credit rating agency raised Egypt’s rating by one notch to “B” from “B-“, citing ongoing reforms that have led to a sharp rebound in GDP growth, while Fitch confirmed its credit rating in light of the country’s somewhat high growth potential and strong support from partners.

The last time Fitch upgraded Egypt’s rating to “B” was 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 elevated due to the conflict in Gaza, which was one of the reasons that Gulf Cooperation Council members and other countries continued to provide financial support to Egypt.

Fitch stated in its statement, “We consider that the risks arising from escalating tensions with Israel have only moderately increased over the past few months, and energy cooperation is progressing.”

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

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

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

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

According to Standard & Poor’s, reforms implemented by authorities over the past 18 months, including the liberalization of the foreign exchange system, led to the sharp rebound in Egypt’s GDP growth and boosted tourism and incoming remittances.

Both Standard & Poor’s and Fitch maintained their outlook for Egypt as “stable.”

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