Friday 24 August 2012

Egypt’s credit rating: stable, for now | beyondbrics

With the IMF in town, Egypt’s finances have been under the spotlight this week. Standard and Poor’s have chipped in to the discussion with the release of their credit rating for the country.

The good news: Egypt has been taken off S&P’s CreditWatch, where it was placed on June 25 following feuding between SCAF and Islamist politicians which led to the dissolution of parliament on June 14. It has also had its long and short-term B/B rating affirmed. The bad news: despite a modicum of stability recently, it remains on negative outlook.

S&P say they believe the Muslim Brotherhood and senior military figures are “moving toward a working arrangement”,  and that “this could lead to the authorities addressing some of Egypt’s pressing structural challenges and stemming the deterioration in government and external finances”.

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