Egypt Daily News – Fitch Ratings upgraded Egypt’s credit rating from “B-” to “B”, highlighting improvements in the country’s financial situation due to foreign investments and tighter monetary conditions.
The agency noted that Egypt’s external finances have improved, with increased foreign exchange buffers and a more sustainable exchange rate policy. Fitch also assigned a stable outlook for the country.
Egypt has been actively pursuing large-scale investments to address its prolonged economic crisis, which has resulted in record inflation, a growing debt burden, and significant currency devaluations over the past two years.
Recently, Egypt secured an $8 billion loan package from the International Monetary Fund (IMF), a $35 billion real estate investment initiative from Abu Dhabi, and nearly $1 billion from the European Union, all of which have contributed to stabilizing its economy.
Despite these positive developments, President Abdel Fattah al-Sisi suggested last month that his government might reconsider the IMF deal in light of increased regional pressures. Yet, the IMF affirmed that the current loan size remains appropriate.
Fitch also cautioned that the ongoing escalation of regional conflicts poses a significant risk to Egypt’s economy.
Attacks by Yemen’s Houthis on Red Sea shipping have led to a decline in Suez Canal revenues and have adversely affected tourism. The overall instability in the Middle East continues to present challenges for Egypt’s economic recovery.
