Fitch downgrades Egypt's credit ratings

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Associated Press

Posted on July 5, 2013 at 1:01 PM

Updated Friday, Jul 5 at 2:01 PM

NEW YORK (AP) — Fitch Ratings is downgrading Egypt's credit ratings after the country's military overthrew the civilian government, saying the political situation could get worse and further damage the national economy.

The firm says Egypt's political situation could become even more unstable, hurting its economy and its creditworthiness and making it harder for the country to make reforms that are needed to secure International Monetary Fund assistance.

On Wednesday the Egyptian military ousted President Mohammed Morsi and suspended the Islamist-drafted constitution.

Fitch lowered Egypt's issuer default ratings and country ceiling to 'B-' from 'B'. Both ratings are non-investment grade or "junk" ratings six notches below investment grade. Fitch's outlook on the country is negative, meaning further downgrades are possible.

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