International rating agency Standard & Poor's announced that it had lowered Egypt’s long-term foreign currency issuer credit and senior unsecured debt ratings from "BBB-" to "BB+". Other double-B rated countries include Costa Rica, Morocco and the Philippines.
All other S&P’s ratings on the Arab Republic of Egypt were also downgraded by one notch. S&P’s thus adjusted Egypt’s long-term local currency issuer credit rating to "BBB" from "BBB+", as well as Egypt's short-term local rating to "A-3" from "A-2", and the foreign currency ratings to "B" from "A-3".
Concerns over limited government fiscal and structural reform measures, as well as the level of flexibility of the exchange rate policy were cited as the main factors behind the ratings cut by S&Ps latest action. Nonetheless, the country’s outlook was confirmed stable, reflecting that government efforts on both aforementioned structural and fiscal fronts are a step in the right direction and should eventually lead to stabilization. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
