Egypt's long-term currency debt downgraded to 'BB-'
Source: BI-ME with Bloomberg , Author: Posted by BI-ME staff
Posted: Fri December 30, 2011 4:42 pm

INTERNATIONAL. Egypt's long-term foreign currency debt was downgraded by Fitch Ratings, which pointed to a decline in central bank reserves and uncertainty over possible International Monetary Fund support.

Fitch lowered the rating to BB-from BB with a negative outlook. The long-term local currency rating was cut to BB from BB+, it said in an e-mailed report today.

Egyptian central bank reserves fell 44% in 2011 as the central bank sought to keep the local currency stable with investment and tourism falling. Reserves fell to about US$20 billion in November, from US$36 billion at the end of 2010, Fitch said today.

Policy makers in the north African country are trying to manage unrest even as borrowing costs rise after the popular revolt that ousted President Hosni Mubarak in February.

“Although reserves remain above three months of current external payments, the pace of decline is a concern,” Fitch analyst Richard Fox wrote in the report.

Alternative sources of funding such as an IMF program have “been promised but await definitive decisions by the government.”

Egyptian public finances have also weakened, Fitch said. Government debt is likely to rise to 80% of gross domestic product in 2012 and this year’s budget deficit will exceed the goal of 8.6% of GDP, it said.

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: September 1, 2014
INTERNATIONAL. Oil markets since 2011 have become less price sensitive to actual supply disruptions, especially to those geopolitical events that have taken place since the Arab Spring.
date:Posted: September 1, 2014
JORDAN. The market recorded an increase in profit after tax to JOD 13.7 million in 2013, stemming from improved returns on underwriting and investment activities. Partially assisting this recovery has been the bullish performance of the Amman stock exchange.
date:Posted: September 1, 2014
SAUDI ARABIA. Consumer spending also remained robust; Non-oil exports rebound owing to greater production of petrochemicals and plastics.
JORDAN. The market recorded an increase in profit after tax to JOD 13.7 million in 2013, stemming from improved returns on underwriting and investment activities. Partially assisting this recovery has been the bullish performance of the Amman stock exchange.
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