By Dean Seal
S&P Global Ratings boosted Egypt's long-term sovereign credit rating one notch to B from B-, citing the country's growth prospects and improving balance of payment trends.
The ratings agency said Friday that Egypt's shift to a flexible exchange rate is generating higher growth and increased tourism. Net financial inflows have improved as well, to the benefit of the economy's external position.
Egypt's government posted a primary surplus of 3.5% of gross domestic product for fiscal 2025, which ended June 30. The country still needs to lower its elevated interest bill while extending the average maturity of domestic debt, S&P said.
The outlook for the nation's debt is stable. S&P said it might be revised to negative if the government's commitment to macroeconomic reform, including its exchange rate flexibility, were to wane and if economic imbalances, such as foreign currency shortages, were to increase again.
At the same time, the Egypt's rating may be raised if net government and external debt positions improve faster than currently projected, potentially through an accelerated pace of deleveraging, or higher foreign direct investments from the planned sale of state assets, S&P said.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
10-10-25 1658ET
