CAIRO, April 6 – Moody’s Ratings has maintained Egypt’s long-term sovereign credit rating at Caa1, while retaining a positive outlook, pointing to ongoing fiscal adjustments and gradual improvements in the country’s external position.
The rating applies to both foreign and local currency obligations, with the agency also affirming Egypt’s unsecured foreign-currency bonds and medium-term note programme at the same level.
In addition, the sovereign sukuk issuance programme managed by the Egyptian Financial Corporation for Sovereign Taskeek was kept at (P)Caa1, with the outlook unchanged.
According to Moody’s, the positive outlook reflects expectations that recent policy measures will continue to strengthen key economic indicators. Egypt has recorded primary budget surpluses since the 2024 fiscal year, while the central bank has taken steps to contain inflation and stabilise foreign exchange conditions.
These developments, the agency said, are expected to ease financing pressures over time and support the government’s capacity to meet its debt obligations.
However, the rating remains constrained by structural challenges. Moody’s highlighted the country’s high public debt levels and rising debt servicing costs, alongside significant refinancing needs in both domestic and external markets.
The agency also pointed to ongoing exposure to external risks, including oil price volatility and tighter global financial conditions, which could trigger capital outflows and add pressure to the economy.
In addition, persistent increases in the cost of essential goods were flagged as a potential source of social strain, as higher prices continue to weigh on household purchasing power.
Moody’s maintained Egypt’s local-currency ceiling at B1 and its foreign-currency ceiling at B3.
