Egypt's economic recovery is heavily reliant on foreign investments and external financing, with significant reforms mandated by the IMF to stabilize its economy.
Turkey's recent credit rating upgrade reflects effective monetary policies and a focus on reducing inflation, which could lead to further economic improvements if maintained.
If Egypt can successfully implement the required reforms and attract foreign investments, it may see further improvements in its credit rating.
Turkey may experience additional credit rating upgrades if it continues to reduce inflation and stabilize its currency, enhancing investor confidence.
Fitch Ratings has upgraded Egypt's credit rating from B- to B, citing improved external financing and recovery of foreign exchange reserves. Despite a stable outlook, the agency warned of risks stemming from regional conflicts, particularly the ongoing war in Gaza, which has impacted Egypt's economy and Suez Canal revenues.
In contrast, Standard & Poor's has raised Turkey's long-term sovereign rating from B+ to BB-, attributing this to the country's abundant reserves and effective monetary policy that has curbed inflation. The agency's outlook for Turkey is stable, with potential for further upgrades if inflation continues to decrease and confidence in the lira is restored.
Both countries are navigating significant economic challenges, with Egypt facing high foreign debt and inflation, while Turkey is focusing on stabilizing its currency and managing public expectations around wages and prices.
