(MENAFN- Daily News Egypt) Governor of the Central Bank of Egypt (CBE) Hassan Abdalla welcomed S&P Global Ratings' decision to upgrade Egypt's sovereign credit rating, describing it as a clear reflection of growing international confidence in the national economy. He attributed the move to the success of recent monetary and structural reforms implemented by the government and the CBE.

Abdalla highlighted that the unification of Egypt's exchange rate regime marked a pivotal step towards restoring market stability and boosting investor confidence. He noted that the improvement in external sector indicators and the rise in foreign exchange reserves demonstrate the effectiveness of the economic policies currently in place.

The governor reaffirmed the CBE's commitment to maintaining disciplined monetary policies aimed at containing inflation, safeguarding financial stability, and ensuring sustainable economic growth. These efforts, he said, have strengthened the trust of international institutions and investors in Egypt's economic outlook.

On Friday, S&P Global Ratings upgraded Egypt's long-term sovereign credit rating to“B” from“B-” with a stable outlook-the first such upgrade in seven years. The agency explained that the decision reflects Egypt's reform momentum over the past 18 months, including the liberalisation of the foreign exchange regime, which has supported a strong rebound in GDP growth during fiscal year 2025.

S&P further noted that Egypt's shift to a flexible exchange rate regime has bolstered economic resilience, contributing to higher tourism revenues, robust remittance inflows, and stronger net financial inflows-all of which have improved the country's external position.

In a related development, Fitch Ratings affirmed Egypt's long-term foreign-currency rating at 'B' with a stable outlook, citing resilient economic performance, improving external indicators, and continued fiscal reform efforts despite regional challenges.

Both assessments, Abdalla said, underscore the success of Egypt's ongoing reform agenda and its ability to navigate global and regional headwinds while maintaining economic stability and growth momentum.

MENAFN13102025000153011029ID1110189731