Cairo - Mubasher: Fitch Ratings has revised the outlook on Egypt's long-term foreign-currency (LTFC) issuer default rating (IDR) from stable to positive.
The rating agency affirmed Egypt’s IDR at 'B-', according to a press release.
Fitch emphasised several key factors driving this upward revision. These include a substantial injection of $35.30 billion in foreign direct investment during the current fiscal year, notably propelled by the UAE-supported Ras al-Hekma real estate project.
Moreover, strengthened financial support, including an expanded $8 billion IMF loan program, a $7.4 billion EU aid package, and a surge in holdings of domestic debt by non-residents, now standing at $35 billion, further contributed to the positive outlook.
Fitch also expressed confidence in the resilience of Egypt's post-devaluation floating exchange rate, particularly under the ongoing oversight of the IMF through late 2026, which played a significant role in the upward revision.
It is worth noting that Egypt’s foreign asset deficit plunged around 70.61% month-on-month (MoM) to EGP 199.65 billion ($4.17 billion) in March 2024, its lowest level since February 2022, or nearly 25 months.
