S&P downgrades Egypt

Standard & Poor's said it lowered the long-term sovereign credit rating on the Arab Republic of Egypt to CCC+ from B -, along with its short-term issuer rating to C from B.

The outlook is stable.

The agency also said it revised the country's transfer and convertibility assessment to CCC+ from B-.

The downgrade reflects a view that the Egyptian authorities have yet to put forward - either to the Egyptian population or the international donor community - a sustainable medium-term strategy to manage the country's fiscal and external financing needs, S&P said.

As a result, the agency said it expects financing pressures to remain elevated and comprehensive donor support, including from the International Monetary Fund, to remain elusive.

S&P said it consider Egypt's capacity to meet its financial commitments to be dependent on favorable financial and economic conditions.

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