Fitch upgraded Egypt’s rating to B, with a stable outlook

Fitch Ratings said on Friday it raised Egypt’s long-term foreign currency issuer default rating from B- to B- with a stable outlook.

The rating agency said the upgrade reflected the country’s lower external exposure, policy adjustments, replenishing external buffers, new capital inflows and a more flexible exchange rate.

While inflation fell to 26.4% in September from 35.7% in February, Fitch expects it to slow to 12.5% ​​by the end of fiscal 2025.

The rating agency expects the interest rate to hold at 27.25% after raising a total of 800 basis points during the first quarter of this year.

Fitch forecasts GDP growth from 2.4% in fiscal 2024 to 4% in fiscal 2025 on the back of strengthening confidence, real incomes, remittances and foreign direct investment.