Amwal Al Ghad English - 2013-07-17 10:50:04
Standard & Poor's Ratings Services kept its credit rating for Egypt unchanged, after Gulf states pledged billions to support the post-coup government in Cairo.
Kuwait, Saudi Arabia and the UAE have recently announced they will provide Egypt with $12 billion, amounting to 4.4% of the country's 2013 gross domestic product, in cash, interest-free loans, oil, and oil products to reduce the likelihood that Egypt will face a balance-of-payments crisis, according to Financial Times.
S&P, which affirmed the country's rating seven levels into junk territory at triple-C-plus, said the ad hoc funding reduces balance-of-payments pressures and allows officials time to address the political and economic challenges facing Egypt. The outlook is stable.
The country's rating reflects its high political, external, fiscal and other economic risks, which are partially mitigated by moderate foreign currency debt obligations and expectations that external financial support will be sufficient and timely enough to avoid default.
Egypt's military intervened earlier this month to oust the Muslim Brotherhood, led by President Mohammed Morsi, from power. The Muslim Brotherhood has since led demonstrations against the ouster. More»