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FINANCIAL NEWS
S&P lowers Egypt’s credit ratings to B
12 Feb 2012
(MENAFN) Standard and Poor’s (S&P) said that as a result of a steep fall in Egypt’s foreign exchange reserves and political uncertainties, the agency lowered the country’s long-term rating to B from B+, reported Xinhua News.
The credit rating agency added that the short-term rating on Egypt was B with a negative outlook too.
It also said that Egypt’s foreign reserves have dropped to USD16.1 billion from USD36 billion one year ago, due to security tensions and political instability.
It is worth noting that in case the Egyptian government failed to curtail the drop in reserves, or an uncertain policy environment and weak institutions emerge from the constant political transition, S&P would further downgrade Egypt’s long-term rating.
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