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

Published on Dec 24, 2012 10:15 PM
 
Policemen stand guard near a poster outside the constitutional court put up by supporters of Egyptian President Mohamed Mursi as they stage a sit-in, in Cairo, Dec 23, 2012. 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. --PHOTO: REUTERS

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.

 
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