February 3, 2011

Ratings Agencies Lower Egyptian Outlook in Face of Turmoil

Fitch Ratings has downgraded Egypt's long term currency rating to BB from BB+ today, based on the high chance of volatility in the transition to a new government. According to Richard Fox, head of Middle East and African ratings at Fitch, the rating reflects the gap between the demands of protestors and the government's position on reform and the risks associated with the likely transition.

Fitch had previously lowered Egypt's outlook on Friday, adding a Negative watch to it's BB+ assessment. Moody's also cut ratings on Monday, with Standard and Poors following on Tuesday.

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