S&P cuts Egypt sovereign rating

By the Associated Press | November 24, 2011 | 5:40 AM EST

CAIRO (AP) — Ratings agency Standard & Poor's says it has cut Egypt's sovereign credit rating, pushing it deeper into junk status on the back of the country's political turmoil and its weak economic profile.

S&P said Thursday it cut Egypt's long-term foreign and local currency sovereign ratings to B+ from BB-, with a negative outlook.

The agency says the cuts reflect its opinion that Egypt's "weak political and economic profile" had deteriorated further.

The cut comes after days of clashes between protesters and security forces in central Cairo — battles that raised questions about the country's political situation days before the scheduled Nov. 28 parliamentary elections.

The vote is the first since former President Hosni Mubarak was ousted from power in February.