Egypt's stock market
Cairo – Mohammed Abdullah
Fitch Ratings cut Egypt's credit rating from B to B- on Friday amid concern that the ouster of former president Mohammed Morsi would dampen
economic growth and fan political instability.
Dr Amr Hassanein, Chairman of MERIS - Middle East Rating & Investors Service (Moody's Affiliate for Egypt and other countries in the region) said that the agency's downgrading of Egypt's rating is not concerning because agencies have gone lower with their ratings in the past.
"What Egypt is currently witnessing on the street is instability, ?which could see the International Monetary Fund (IMF) refuse Egypt's request for a $4.8 billion loan," he said, adding that the country is two grades away from CCC+, which is a high risk grade.?
The global credit agency downgraded Egypt's rating because it fears that the country may fail to pay its debts ?in foreign and local currencies.
Flitch said: "The outlooks are negative, meaning further downgrades ?are possible.?
"There is a risk of a material deterioration of domestic political stability, with downside ?risks for economic outcomes and creditworthiness. There is high uncertainty over how the risks ?resulting from the military coup evolve over the short term and the eventual pathway to a peaceful ?political transition." the agency added.?