WASHINGTON, Oct 11, 2025 (BSS/AFP) - S&P Global Ratings on Friday announced it was upgrading Egypt's credit rating, praising the progress made by the government's IMF-backed economic reform program.

The US ratings agency raised Egypt's sovereign debt rating to B from B-, adding that its outlook for the North African country was "stable."

"The upgrade reflects the reforms undertaken over the past 18 months by the authorities," S&P said in a statement.

It added that the government's moves to liberalize the foreign exchange regime, supported by an International Monetary Fund reform program, had led to a rebound in economic growth.

Egypt's economic growth rebounded in the last fiscal year to 4.4 percent from 2.4 percent in 2024, and was forecast to hit an average growth rate of 4.6 percent over the next three years, it said.

"The Egyptian authorities' commitment to a market-determined exchange rate, alongside the policy anchor provided by the sizable IMF program, should continue to support GDP growth prospects and fiscal consolidation efforts," S&P said.

The ratings agency warned that risks due to regional tensions related to Israel's war in Gaza remained, while Yemen's Huthi rebels continued to threaten ships passing through the Suez Canal -- a key revenue source for the Egyptian government.

"Nevertheless, Egypt will likely remain out of regional conflicts and continue to play a major role as a peace negotiator and provider of humanitarian assistance to Gaza via the Rafah crossing," it added.