Standard & Poor's cut Egypt's long-term foreign currency rating to B from B+ on Friday, five notches into junk territory, and kept the outlook at negative, citing a sharp decline in Egypt's foreign exchange reserves and political uncertainty.
"External financing is becoming more problematic in the face of the related problems of sharply falling reserves, exchange rate pressures, and capital flight," S&P said in a statement.
"The negative outlook reflects our view that a further downgrade is possible if the government fails to stem the decline in reserves, or an uncertain policy environment and weak institutions emerge from the ongoing political transition," the agency added.
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