Egypt – Ratings Affirmed; Outlook Remains Stable

Rating Action

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has affirmed Egypt’s Long-Term Foreign Currency Rating (LT FCR) and Long-Term Local Currency Rating (LT LCR) at ‘B’. At the same time, CI Ratings has affirmed the sovereign’s Short-Term (ST) FCR and ST LCR at ‘B’. The Outlook on the ratings remains Stable.

Rating Rationale

The ratings reflect Egypt’s gradually strengthening shock‑absorption capacity and easing external liquidity strains, underpinned by sustained reform momentum and substantial financial support from the IMF, the World Bank, the European Union, and Gulf partners. These factors have enabled the government to maintain a more flexible exchange rate and increase official reserves to a level that now provides full coverage of short-term external debt on a remaining maturity basis. The ratings remain supported by the moderate level of gross external debt, improving investor sentiment, ongoing efforts to improve…