The Standard and Poor's financial institution reduced Egypt's credit rating because of the country's unclear political scene and deteriorated economic conditions. The institution revealed it reduced Egypt's long-term foreign and local currency debts from B+ to BB- with a negative future vision, while its short-term debts' rating reduced to B. Modis financial institution reduced Egyptian debts' credit rating from Ba3 to B1on October 27 with a negative future vision. The institution revealed the major reasons behind the Egyptian governmental shares' rating are the weak economic development, the financial sector's deterioration, huge decline in the foreign currency reserves, the political crisis and unstable condition, high deficit and the growing pressures on the public budget. Standard and Poor's reduced Egypt's credit rating by one degree last October, justifying this by the growing risks that threaten the Egyptian economy. The institution warned against a further possible reduction if the political shift came less smoothly than expected, which may harden funding for governmental borrowing. Standard and Poor's reduced Egypt's long-term foreign currency debts from BB to BB-, whereas its long-term local currency debts went down from BB+ to BB-.
