Fitch has downgraded Egypt’s long-term foreign currency issuer default rating to BB- from BB and long-term local currency issuer default rating to BB from BB+.
Outlook on both ratings is negative.
Fitch says “The downgrade and negative outlook reflect the substantial and continuous erosion of Egypt’s international reserves in 2011, which accelerated in October/November. Ongoing political turbulence is also delaying economic recovery and has contributed to worsened debt dynamics.”
