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S&P downgrades Egypt

Standard & Poor's has cut Egypt's credit ratings deeper into junk territory, saying the transition to a new government has increased risks to macroeconomic stability, Reuters has reported. S&P cut the country's foreign currency rating to BB-minus from BB. The local currency rating was cut by two notches, to BB-minus from BB-plus. All the ratings have a negative outlook. The rating agency warned another downgrade is possible if the political transition is less smooth than expected, making it more difficult to finance the government's borrowing requirements or the country's external needs.