Saturday 04/April/2026 – 09:50 AM
Agency said Moody’s For the credit rating, the positive outlook for the Egyptian economy, in effect since March 2024, reflects expectations of continued improvement in financial and external indicators, supported by the authorities’ commitment to reforms, which supports improved ability to bear debt burdens and reduce financing needs.
She pointed out that the Egyptian government has maintained large primary surpluses since fiscal year 2024, while the Central Bank focused on reducing inflation and restoring external balance, which contributed to restoring macroeconomic stability.
Moody’s credit rating agency stated that financial and tax reforms in Egypt support achieving higher primary surpluses in the coming years, with the agency adopting a positive future outlook on the Egyptian economy.
Eliminate tax exemptions for state-owned companies
This comes at a time when the government continues to implement an economic reform program supported by the International Monetary Fund, aimed at enhancing financial sustainability and reducing financing needs, in light of the continuing pressures associated with rising energy prices and tightening global financial conditions.
The agency expected that the average primary surplus in Egypt would reach about 4% of GDP during the next few years, excluding non-recurring revenues from the sale of assets, compared to about 3.5% in fiscal year 2025.
She attributed this to measures that include abolishing tax exemptions for state-owned companies, improving tax compliance and administration, in addition to implementing new tax measures estimated at about 1% of GDP as additional revenues.
She added that the Council of Ministers approved a package of tax reforms and submitted it to Parliament, with the expectation that it will be approved by June 2026, as one of the structural criteria within the Fund’s program.
The agency indicated the government’s commitment to continue reducing untargeted subsidies, after achieving full recovery of retail transportation fuel costs by the end of 2025, as part of efforts to control public finances.
Moody’s affirmed the Egyptian government’s long-term rating in foreign and local currencies at Caa1, while maintaining a positive future outlook. It also affirmed the rating of priority unsecured bonds in foreign currency at Caa1, and the rating of the medium-term bond program at (P)Caa1.
