Sunday 15 January 2012

Risky Egypt - Zawya

Egypt is now among the ten riskiest sovereigns in the world, according to the latest report from CMA Datavision. In other words, Egypt is among the nations most likely to default on its debt.

While that does not necessarily mean that Egypt will default, its spread has risen as investors are nervous that the country could default.

"Investor concern on Egypt's potential default and drawn out political transition saw the spreads widen to 621bp and implied rating to CMA_b+. S&P also downgraded to B+ in late November," says the independent credit default spread (CDS) tracker, which rates virtually all sovereigns, and publishes a report every quarter.

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