Fitch downgrades Egypt

Fitch Ratings said it had downgraded Egypt's long-term foreign currency rating from BB- to B+ with a negative outlook because of increasing uncertainties over the political future of the country.
It also downgraded the long-term local currency rating from BB to B+, also with a negative outlook, while affirming the short-term foreign currency rating at B. The downgrade and negative outlooks "reflect increased uncertainties surrounding the political transition following (Thursday's) ruling by the Supreme Constitutional Court to annul parliamentary elections and dissolve parliament," a statement said.
Whatever the outcome, "the political and policy-making process has been complicated, delaying the likely implementation of the comprehensive macroeconomic and structural reforms needed to kick start recovery and ease financing strains" said Richard Fox, head of Middle East and Africa sovereigns at Fitch.