Dec. 30 (Bloomberg) -- Egypt’s long-term foreign currency debt was downgraded by Fitch Ratings, which pointed to a decline in central bank reserves and uncertainty over possible International Monetary Fund support.
Fitch lowered the rating to BB-from BB with a negative outlook. The long-term local currency rating was cut to BB from BB+, it said in an e-mailed report today.
Egyptian central bank reserves fell 44 percent in 2011 as the central bank sought to keep the local currency stable with investment and tourism falling. Reserves fell to about $20 billion in November, from $36 billion at the end of 2010, Fitch said today.
Policy makers in the north African country are trying to manage unrest even as borrowing costs rise after the popular revolt that ousted President Hosni Mubarak in February.
Disclosure: Short EGPT