(MENAFN- Daily News Egypt) Egypt's Minister of Finance, Ahmed Kouchouk, announced that Standard & Poor's (S&P) has upgraded Egypt's credit rating from“B–” to“B” for the first time in seven years, maintaining a stable outlook. The move, along with Fitch Ratings' decision to affirm its upgraded rating from last year with the same outlook, underscores international recognition of Egypt's ongoing economic reforms and the government's commitment to implementing a comprehensive national reform programme.

Kouchouk explained that the wide-ranging economic and fiscal reforms implemented by the government, coupled with tangible results and strong private sector engagement, have captured the attention of investors, global markets, and international institutions. He noted that international rating agencies have begun to reflect this progress in their assessments, revising their outlooks positively and upgrading Egypt's creditworthiness, which confirms growing confidence in the country's economic direction.

The Minister emphasised that Egypt continues to address structural challenges and advance its reform agenda through coherent and integrated policies aimed at stimulating growth, enhancing competitiveness, and ensuring long-term stability. He added that the continuation of these reforms, supported by consistent and coordinated economic policies, will yield lasting benefits for citizens' quality of life and reinforce Egypt's position in global markets.

Kouchouk described the latest decisions by S&P and Fitch as both an acknowledgment and validation of the government's reform trajectory. He said these developments represent a vote of confidence from global credit rating agencies and the international financial community in the effectiveness of Egypt's economic reform agenda, which seeks to achieve comprehensive stability, strengthen competitiveness, and attract greater domestic and foreign investment.

Yasser Sobhy

Deputy Minister for Financial Policies Yasser Sobhy said there is now a growing sense of optimism surrounding Egypt's economic performance, both domestically and internationally. This renewed confidence, he noted, is evident in the decline in the cost of international financing and in the rising interest from local and foreign investors in expanding direct investments and holdings of Egyptian financial instruments. Sobhy added that Egypt's improved credit rating will help expand its investor base, reduce perceived risk, and support the country's ability to sustain its economic progress and achieve positive, long-term growth.

Alaa Abdel Rahman, Advisor to the Minister for International Financial Institutions, highlighted the Ministry's continuous engagement with international financial institutions, development banks, and rating agencies throughout the year. This communication, he explained, ensures that Egypt provides regular updates on fiscal and economic policies, shares verified data, and responds transparently to inquiries, helping to present an accurate picture of the country's economic performance and reform outcomes.

Alaa Abdel Rahman

Reports released by both S&P and Fitch confirmed that their decisions were based on Egypt's ongoing structural reforms, the adoption of a flexible exchange rate regime, increased inflows of foreign direct investment, and improved external sector indicators. The agencies also cited the government's fiscal discipline and the achievement of a primary surplus of 3.6% in the last fiscal year. Furthermore, they pointed to a decline in government debt levels, expectations of economic growth reaching 4.4% in 2025 compared to 2.4% in 2024, greater economic resilience, and enhanced investment conditions.

Both agencies also highlighted the growing role of the private sector, noting that private investment has increased by more than 70% over the past year. Fiscal reforms have helped broaden the tax base and increase revenues by 35% without imposing additional burdens on taxpayers, largely due to the introduction of new tax facilitation measures.

These developments, according to the Ministry of Finance, reflect a renewed sense of international confidence in Egypt's economy and confirm the positive trajectory of its reform path. They also reinforce the government's ongoing efforts to build a more competitive, resilient, and sustainable economy capable of generating inclusive growth and improving living standards across the country.

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