Egypt: Credit rating downgraded as political turmoil hits economy
Ratings agency Standard and Poors’ has downgraded Egypt’s long-term credit rating.
Egypt is now rated as ‘B-’ down from B due to recent political instability, adding that further downgrades are possible if the uncertainty continues. The downgrade highlights that the ratings agency believe there is institutional weakness in Cairo.
A statement from the agency said, “"The negative outlook reflects our view that a further downgrade is possible if a significant worsening of the domestic political situation results in a sharp deterioration of economic indicators such as foreign exchange reserves or the government's deficit."