Egypt: Credit rating downgraded as political turmoil hits economy

Ratings agency Standard and Poors’ [2] has downgraded Egypt’s long-term credit rating.

Egypt is now rated as ‘B-’ down from B due to recent political instability [3], 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 [4] such as foreign exchange reserves or the government's deficit." 

[5] © 2012 Al Bawaba (Albawaba.com)