S&P downgrades Egypt

Ratings agency Standard & Poor's has downgraded Egypt's credit rating further as the ongoing upheaval in the country continues.

S&P said the both the country's long-term foreign and local-currency sovereign credit ratings had been cut to 'B' from 'B+'. It justified the downgrade by warning Egypt's external financing risks have risen significantly, after foreign direct investment tumbled in the wake of the revolution. The Egyptian Central Bank has been forced to inject stimulus into the economy to counter outflows, but S&P said this had caused a sharp decline in its international reserves. The agency said: "We believe the sharp decline in Egypt's foreign exchange reserves, in combination with on-going poli...