Egypt credit rating raised by Moody's to B3

Moody's raised Egypt's long-term debt rating by one notch from Caa1 to B3 on Friday and assigned a positive outlook, meaning the ratings agency could consider a further upgrade in coming months.

Moody's said fiscal reforms linked to Egypt's $8 billion funding package from the International Monetary Fund had put government debt and interest burdens on a declining path, though from elevated levels.

The agency said stronger revenue collection and spending restraint had supported the progress. It also said Egypt's move to a flexible exchange rate and tighter monetary policy had strengthened external buffers and the economy's ability to absorb shocks.

Egypt has ended food aid measures described by Moody's as too extensive. Inflation is expected to exceed 13 percent this year, after reaching more than 33 percent in 2025.