Military Loan

Cairo, Egypt (AHN) – Credit ratings agency Standard & Poor’s (S&P) announced on Thursday that it has cut Egypt’s sovereign debt rating because of further deterioration in the country’s already “weak political and economic profile.”

S&P cut Egypt’s rating from BB- to B+ with a negative outlook, which suggests the nation’s creditworthiness could drop further during the transition from military rule to a civilian government. The ratings agency had just downgraded Egypt to a BB- on Oct. 18, citing concerns over the risks of political transition.

Parliamentary elections are slated for Nov. 28, the first since President Hosni Mubarak was overthrown in February.

However, an increasing number of Egyptians angered by the slow pace of elections set by the ruling military have taken to the streets to demonstrate. Those protests are increasingly resulting in violent clashes.

S&P faulted Egypt’s ruling Supreme Council of the Armed Forces for allowing violence to increase in Tahrir Square since Nov. 20. The ratings agency said that it based its ratings on the increasingly cloudy prospects that the military can accomplish a smooth political transition to democracy or that any government there can place the nation’s public finances on a “more sustainable path.”

Egypt’s foreign currency reserves lost $14 billion this year and continue to fall.

View full post on Economy, Business And Finance Stories

Related posts:

1. IMF extends $3 billion loan to Egypt
2. Moody’s cuts Washington Post rating due to Kaplan
3. Embattled Delhi Games organiser quits political post
4. Five ways to improve your credit rating
5. IMF to lend Egypt $3 bn: ministry (AFP)