Fitch Ratings has affirmed Egypt's long-term foreign-currency credit rating at "B" with a stable outlook, supported by strong economic growth, continued backing from international partners and the size of the Egyptian economy relative to countries in the same rating category.

The agency said these strengths are offset by a number of challenges, chiefly weak public finances, high debt-service costs and large external financing needs, as well as inflationary pressures and geopolitical risks.

Fitch pointed to an improvement in Egypt's foreign reserve indicators: total international reserves rose by about USD 5.5 billion in the first eight months of 2026 to reach USD 54.4 billion.

The central bank's net foreign assets also rose by about USD 5.6 billion to USD 19 billion in August, while the banking sector's net foreign assets held steady at USD 12.6 billion.

The agency believes this performance reflects Egypt's ability to finance its current-account deficit through foreign direct investment inflows and external borrowing.

Fitch praised the resilience of the Egyptian economy, noting that growth accelerated to 5.1% in fiscal year 2025-2026, driven by tourism, export industries and domestic consumption.

It expects growth to slow slightly to 4.7% in fiscal year 2026-2027 as the pace of investment eases and consumption is weighed down by high inflation.