S&P keeps Egypt’s credit rating at B/B with stable outlook

S&P Global Ratings kept Egypt’s long- and short-term sovereign credit ratings at B/B and left the outlook stable.

The decision reflects measures that helped steady the economy after regional conflict triggered foreign investment outflows and a fall in the pound.

Egypt’s international reserves reached a record $54.5 billion in September, while foreign holdings of local-currency government securities had partly recovered.

Remittances, tourism and recovering Suez Canal revenue helped offset higher energy import costs.

But Egypt remains exposed to fuel-price rises, gas-supply disruptions and pressure on shipping through the Bab El-Mandeb Strait.

S&P expects economic growth to slow from 5.1 percent in the fiscal year ended June 2026 to 4.5 percent in fiscal 2026/27, while high interest payments continue to weigh on government finances.

S&P said stronger investment or state-asset sales could support an upgrade, while renewed foreign-currency shortages or higher interest costs could lead to a downgrade.