S&P downgrades Egypt credit rating on 'elevated' tensions

CAIRO (AFP) - Rating agency Standard and Poor's on Monday downgraded Egypt's long-term credit rating because of "elevated" tensions over its political crisis, and warned it could be lowered further.

The country's long-term rating was lowered to 'B-' from 'B' because the turmoil has "weakened Egypt's institutional framework, and the increasingly polarised political discourse could diminish the effectiveness of policy-making," the agency said.

"A further downgrade is possible if a significant worsening of the domestic political situation results in a sharp deterioration of economic indicators such as foreign exchange reserves or the government's deficit," it said.

Egypt's economy, once a vibrant opportunity for investors, was brought low by the early 2011 revolution that ousted Hosni Mubarak, ruler for the previous three decades.