Moody's has upgraded Egypt's credit rating to "B3" while keeping a positive outlook, driven by fiscal consolidation efforts and structural reforms.

The agency attributed its decision to progress in implementing reforms, noting that the shift to a flexible exchange rate and a tighter monetary policy have helped strengthen external reserves and increase the Egyptian economy's ability to absorb shocks.

The positive outlook reflects the possibility that the debt and interest burden could decline faster than the agency's baseline expectations, supporting an improvement in the state's fiscal position.

Moody's expects the Egyptian government to continue fiscal consolidation measures after the current International Monetary Fund (IMF) programme ends in December 2026.