PARIS, May 23, 2012 (AFP) - Standard & Poor's dropped its rating for Tunisia by one notch on Wednesday to a speculative 'BB/B' level due to political uncertainty and weaker economic outlook.
"Despite overall stability and consensus since the removal of President Ben Ali in early 2011, we believe pronounced medium-term policy uncertainties will persist, at least until Tunisia adopts a new constitution and elects a government," S&P said in a statement.
"We do not expect this before mid-2013," it added.
It gave the rating a stable outlook, however, as despite the uncertainty it expects the political transition will proceed without violence.
S&P added that Tunisia's economic, fiscal, and external indicators -- both in reported data and in its revised forecasts -- are now weaker than it previously anticipated.
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