Fitch downgrades Egypt to B-, outlook negative

Ratings agency Fitch has downgraded Egypt's long-term rating to B- from B, with a negative outlook (release).

At 'B-', the rating is tolerant to a high level of political risk and macroeconomic weakness. The Negative Outlook reflects the risk factors that may, individually or collectively, result in a downgrade of the ratings by up to one notch:-

- The outbreak of widespread, severe and sustained political violence that worsened governability and economic outcomes still further.

- An unsustainable worsening of fiscal outcomes which would increase financing risk and threaten solvency.

- Renewed sustained falls in international reserves likely reflecting a failure to secure sufficient external financing from bilateral partners or the IMF.