Cairo: S and P Global Ratings has upgraded Egypt's long-term sovereign credit rating to 'B' from 'B-' while maintaining a stable outlook, citing benefits from the country's shift to a flexible exchange rate policy.According to State Information Service Egypt, the rating agency affirmed Egypt's short-term sovereign credit rating at 'B' and raised its transfer and convertibility assessment to 'B' from 'B-'. The agency highlighted that Egypt's move to a more flexible exchange rate has led to higher economic growth, increased tourism revenue, and greater remittance inflows. Additionally, the nation has experienced improvements in net financial inflows, which have contributed to strengthening its external economic position.The Egyptian government reported a primary surplus of 3.5% of GDP for the fiscal year 2025, which concluded on June 30. Despite this positive development, S and P identified the reduction of high-interest payments while extending the average maturity of domestic debt as key challenges for t he country's public finances.The stable outlook reflects a balance between Egypt's improving growth prospects and balance of payments trends against its continued high government deficits and debt, including external commercial obligations.