MOSCOW, July 6 (RIA Novosti) - Fitch Ratings has downgraded Egypt’s long-term foreign and local currency Issuer Default Ratings (IDRs) to 'B-' from 'B', the ratings agency reported Friday.
The outlooks are negative, Fitch said. The short-term rating has been affirmed at 'B' and the country ceiling downgraded to 'B-' from 'B', it said.
“There is a risk of a material deterioration of domestic political stability, with downside risks for economic outcomes and creditworthiness,” the agency said.
“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,” it said.
Besides, Fitch stressed, the political situation may make it more difficult to implement the fiscal and structural reforms required to secure an IMF program.