Capital Intelligence downgrades Egypt

  • Share via facebook
  • Tweet this
  • Bookmark and Share
(Getty Images)

(Getty Images)

Egypt's long term foreign and local currency sovereign ratings were downgraded to B from BB- by ratings firm Capital Intelligence, as political uncertainty continues to weaken the North African country's economy.

The rate cut coincided with a further downgrade of Egypt by Moody's Investor Service last week as the uncertainty and continued violence erode confidence in the economy and make the transition to stability in the post Hosni Mubarak era more difficult.

The rating agency said a decline in the central bank's foreign currency reserves (which cover less than three months of imports), the increase in dollarisation levels and the outflow of capital underpinned its decision and illustrated the continuing deterioration of public finances.  

The North African country's central bank increased interest rates last week for the first time since 2011 prior to the moves by Capital Intelligence and Moody's in a bid to curb inflation. The Egyptian pound has lost about 10 percent of its value against the dollar since last year. 

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Women edge into Gulf boardrooms as economies, societies shift

Women edge into Gulf boardrooms as economies, societies shift

Amina al-Rustamani, CEO of TECOM Investments, is leading the...

Concerned for stability, Saudi Arabia tightens curbs on dissent

Concerned for stability, Saudi Arabia tightens curbs on dissent

Gulf kingdom intensifies crackdown on domestic dissent, raising...

Frustrated Kuwaitis ask, why is Kuwait falling behind?

Frustrated Kuwaitis ask, why is Kuwait falling behind?

Citizens wonder why oil producer Kuwait is not as dynamic a hub...

4
Most Discussed
  • 54
    Three UAE women attacked with hammer at London hotel

    I really feel that Arabian Business.Com should now close this comments page. This should be all about sympathy for the families not what it is/has turned... more

    Wednesday, 16 April 2014 1:06 PM - Adrienne
  • 51
    Why Dubai isn't a plastic city

    What is definitely not a plastic city. The Arabs have a culture dating back to several centuries. 50 years back Dubai was just a fishing village. Today... more

    Tuesday, 8 April 2014 3:49 PM - P. MADHUSUDAN
  • 48
    DMCC boss Ahmed Bin Sulayem entertains Robert Mugabe in Dubai

    @fga ''However today, simply because he decided to dispossess a few white farmers of their land and redistribute to the poorer indigenous blacks'' more

    Sunday, 13 April 2014 3:02 PM - Matt Williams