Aug 23 2012
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S&P Removes Egypt From Negative Credit Watch, Affirms Foreign Currency Ratings
Thursday, Aug 23, 2012
By Melodie Warner
Standard & Poor's Ratings Services removed Egypt from Negative Credit Watch and rated its outlook as negative, citing uncertainties over the government's political goals and the status of key state institutions.
A country is put on Negative Watch when it is under review for downgrade, while a negative outlook is a long-term view where the rating might go.
But the ratings company also affirmed Egypt's long- and short-term foreign currency ratings of B, which is five steps into junk territory. S&P said it believes Egypt's dominant political group--the Muslim Brotherhood--and the senior ranks of the Egyptian military are moving toward a working arrangement, which may address some of the country's pressing structural challenges.
On Wednesday, Egypt formally requested $4.8 billion from the International Monetary Fund. The loan request marks an increase from previous negotiations for a loan of $3.2 billion that Egypt's military leadership rejected last year.
--Matt Bradley contributed to this article.
Write to Melodie Warner at email@example.com
(END) Dow Jones Newswires
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