Standard & Poor’s has reduced Egyptian rating by one notch in the face of growing risks faced by the economy during the transition period. It warned that rating reduction is possible.
The lowering of rating increases the difficulties both for government to borrow as well as well as for the cost of borrowing. It may also increase the premium on marine insurance that would eventually affect the price of goods and services in the domestic market.
Al-Sharq al-Awsat, October 20, 2011