S&P Global Ratings affirmed Egypt’s sovereign credit rating at “B” for foreign and local currency obligations, at both the long- and short-term levels, while maintaining its stable outlook.
Balancing growth and regional risks
The agency said the stable outlook reflects a balance between Egypt’s medium-term economic growth prospects and continued reform momentum on one hand, and risks associated with the ongoing conflict in the Middle East on the other.
Outflows and a weaker pound
S&P said outflows from foreign portfolio investments reached 9.5 billion dollars in the months following the outbreak of the conflict on 28 February 2026, while the Egyptian pound declined by up to 15% against the US dollar.
The agency added that pre-emptive measures taken by the Egyptian authorities helped ease the immediate pressures arising from the conflict, and that the swift and comprehensive response contributed to market stability and reversed a significant portion of exchange-rate volatility.
Exchange-rate flexibility and energy measures
The agency attributed market stability to the continued commitment to exchange-rate flexibility, along with measures to rationalize energy consumption and adjustments to fuel and electricity prices.
