FINANCIAL NEWS

S&P removes Egypt from credit watch list, outlook ‘negative’

25 Aug 2012

(MENAFN) Egypt is no longer on Standard & Poor’s watch list, and was affirmed ‘B/B’ rating on its long and short-term foreign and local currency sovereign, although with negative outlook, Reuters reported.

S&P based its decision on the emergence of working relationship between Egypt’s dominant political group and the military.

“B” is a speculative grade rating which indicates that the rated entity is more vulnerable to adverse business, financial and economic conditions but currently has the capacity to meet financial commitments.

S&P said the new relationship between the party and the military could pave the way for an improvement in medium-term policymaking, therefore Egypt’s weak public sector finances and external position could stabilize.

The negative outlook was given to the country’s outlook as there is a one-in-three likelihood of a downgrade is political or social tensions escalate once more, the ratings agency added.

More News

This website uses cookies to ensure you get the best experience and by clicking “I Accept” below, you consent to the use of cookies. Learn more