(Updates with S&P statement in third paragraph.)
Nov. 24 (Bloomberg) -- Egypt’s long-term foreign sovereign credit rating was cut one level to B+, four levels below investment grade, at Standard & Poor’s, after clashes broke out this month between protesters and security forces.
The outlook is negative, the rating agency said, reflecting the possibility of a further downgrade. S&P said it expects the country’s foreign currency reserves, which lost $14 billion this year to $22 billion, to continue falling.
“The downgrade reflects our opinion that Egypt’s weak political and economic profile, as defined by our criteria, has deteriorated further,” S&P said in the statement today. “This follows the clashes between protesters and security personnel.”
S&P cut Egypt’s rating on Oct. 18 on concern that a new government may not address fiscal deficits and falling international reserves. The nation’s ruling military council has accepted the resignation of the interim government this week and plans to hold parliamentary elections starting Nov. 28.
--Editors: Claudia Maedler, Shaji Mathew
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