S&P affirms Egypt

Standard & Poor's said it affirmed the long- and short-term foreign- and local-currency sovereign credit ratings on Egypt at B.

The agency also removed the ratings from CreditWatch, where they were placed with negative implications in June.

The outlook is negative.

The transfer and convertibility assessment is B in line with the sovereign ratings.

The recovery rating on the unsecured foreign-currency debt remains unchanged at 3, indicating 50% to 70% expected recovery in a default.

The ratings reflect the working relationship between the military and the dominant political group, the Muslim Brotherhood, which is gradually being reached, S&P said.

This could pave the way for an improvement in medium-term policymaking, the agency said. Therefore, Egypt's weak public sector finances and external position could stabilize, S&P said.

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