S&P affirms Egypt’s credit rating at B/B

By Aya Anwar On Oct 11, 2026

Egypt’s credit rating was affirmed at B/B with a stable outlook by S&P Global Ratings, reflecting a balance between growth prospects and continued economic reforms over the medium term, the Ministry of Finance said.

Egypt aims to reduce its debt-to-gross domestic product (GDP) ratio to 78 per cent by June 2027 and cut external debt by $1 billion to $2 billion annually, according to the ministry.

According to the Ministry of Finance, fiscal policy priorities focus on stimulating investment, growth, and employment while maintaining flexibility in public finance management and adhering to fiscal discipline and debt reduction.

In addition, Egypt will work to increase foreign direct investment inflows, diversify its growth structure, and boost merchandise and services exports. The ministry said proactive and consistent policies also strengthen the economy’s ability to contain the repercussions of regional crises.

Manufacturing, telecommunications, and tourism are driving economic growth, which reached 5.1 per cent in fiscal year 2025/2026. The private sector is also recovering its activity and strength, accounting for 65 per cent of investments and achieving high growth rates.

The ministry noted that S&P Global Ratings expects further growth as the government continues implementing policies aimed at providing incentives, simplifying procedures, and enhancing predictability.

On the fiscal front, Egypt recorded a primary surplus of 4.9 per cent of GDP, while the overall deficit declined to 5.8 per cent of GDP in the last fiscal year despite the challenges facing the economy. Moreover, tax facilitation measures helped increase tax revenues to 13 per cent of GDP without imposing additional burdens, the ministry said.

However, rising debt-servicing costs and financing needs continue to pose challenges to public finances. The ministry expects conditions to improve significantly as interest rates decline, while exceptional revenues are being directed towards accelerating the government debt-to-GDP reduction plan.