Egypt Credit Rating Downgraded to “Junk” Status

This puts the Muslim Brotherhood run Egypt in the same category as such economic stalwarts as Pakistan and Belarus, which is also a warning that if you’re going to have your country run by crazy dictators, you should probably make sure that you have a lot of oil first.

The most-populous Arab country’s rating was lowered by one level to B-, six steps below investment grade, with a negative outlook, S&P said today. The rating, which is also on par with Pakistan, may face more downgrades should political instability result “in a sharp deterioration of economic indicators such as foreign exchange reserves or the government’s deficit,” S&P said. Egypt’s benchmark bonds were little changed.

S&P has reduced Egypt’s rating five times since the start of a popular revolt almost two years ago. The country’s credit risk jumped this month before a constitutional vote that has intensified divisions between the ruling Islamists and their opponents. The unrest led President Mohamed Mursi’s government to ask the IMF to delay a decision on a $4.8 billion loan, after getting the initial go-ahead last month.

In 2010, Egypt’s credit rating was at BBB-, a lower medium grade investment, the lowest possible level it could be at and still be  investment quality. This wasn’t great, but but since then it has completely fallen out of the investment category.

The news hasn’t been any better from Moody’s. While the Muslim Brotherhood is proposing to buy Qatari gas at inflated prices as a payoff to Qatar for backing the Muslim Brotherhood’s takeover of Egypt and Syria, the country is bleeding financially and waiting around for the 4.8 billion dollar IMF loan.

The Egyptian pound is down to its lowest level against the dollar in eight years and Egyptians are scrambling to convert pounds into dollars. Currency reserves are at 15 billion, just enough to cover three months of food imports, as Egypt is a food importer. And Egyptian banks are bringing in dollars from abroad while stocks are falling.

The Muslim Brotherhood needs a bailout and the United States is the likeliest place it will get it, just as the United States bailed out the USSR during its worst periods.

  • κατεργάζομαι

    RE: "Egypt Credit Rating Downgraded to “Junk” Status."

    EGYPT totally sphinxes.

  • Thomas Wells

    The new Fuhrers will make money by selling stones from the pyramids on e-bay.

    • M.Abdar

      I think we re talking now about people to face a real economical problem , rather than a severe regime confrontation ..with my respect to your words ,,the developing countries are actually living using our people and resources just as a mere fuel for their sake

      • Parenthetical Phrase

        I think you mean the developed countries, not the "developing countries". Egypt does not have oil. It has nothing but barely educated leaders, incompetent university graduates and a lot hateful angry imams who want power. Oh and whole lot of illiterate people who are great at forming a mob, beating people up, screaming for the death of Jews and Christians, gang raping women and burning Israeli flags. Egypt now wants to destroy the pyramids -the only reason why any Western tourist might want to go there. Rich Arab tourists go there to have sex with poor Egyptian girls and boys and then leave. But Egypt is not a victim. It did this to itself.

        • sweilam

          You are pathetic

  • poetcomic1

    I think we should borrow money from China to help Sharia Egypt.

  • mah29001

    The Muslim Brotherhood doesn't seem to really care about average Egyptians and yet the Left and the media here depicted them to be "democracy reformers" pathetic.

    • objectivefactsmatter

      "…the Left and the media here depicted them to be "democracy reformers" pathetic."

      It's enough for them to know it pisses off the right. It never occurred to them they're contributing to the destruction of their own civilization because they're so arrogant with their "benign" racism and bigotry.

  • objectivefactsmatter

    "This puts the Muslim Brotherhood run Egypt in the same category as such economic stalwarts as Pakistan and Belarus, which is also a warning that if you’re going to have your country run by crazy dictators, you should probably make sure that you have a lot of oil first."

    That's funny. I thought everyone already knew about that formula. They have virtual oil; the ability to blackmail the West for direct support. They don't need the mess from all the work dealing with…work. The decision makers will live almost as well as the Saudi royal family.

  • Emad

    The western people must to force their governments to send back the smuggled money those corrupted business men of Mubarak stole from EGYPT. Now westerns appear angles in fact they were happy having dirty business with such a dictatorship like Mubarak. Egyptian people were protesting and opposing the corrupted western agent Mubarak at the same moment when western governments were inviting Mubarak for business purpose. Do not forget Catherin Ashton statements about how much wealthy was stolen from EGYPT and sent to EUROPE and USA, also do not forget what John Kerry was saying about 30 billion of USD belong to Mubarak found in USA banks

    • brianrichardallen

      …. The West must "send back" the money those business men of Mubarak ….

      …. Used to make Egypt the world's biggest importer of wheat, to make the bread and has bought the food that has kept stuck pretty-much in the 13th-century basket-case Egypt alive these past 30-odd years.

      1. Don't hold your breath waiting to "get back" any of the Billions of Dollars with which Mr Mubarak has kept you all alive and;

      2. Good luck getting the aid you're gunna need if millions of you are not – quite soon – to be dead from starvation.

  • Parenthetical Phrase

    Let Egypt come crawling on its hands and knees to Saudi Arabia and China. Yes, China especially. In China, instead of saying WWJD, they say WWMD (What Would Mao Do) and that's a whole other ball of wax. Saudi Arabia may however start taking Egyptians as slaves. That would be a switch wouldn't it? I mean slavery is legal in Egypt. Only its Egyptians who have black African slaves.

  • brianrichardallen

    Pretty darned handy for the world's biggest importer/consumer of wheat to be bankrupt and have no credit.

    Reckon about 20-30-million deaths from starvation coming down Egypt's mobbed-up murtadd-muslim Mussolini-modeled modified-Marxist mother's milquetoast Missus and Mistah Zero's muslim-murrahfurrah-hood motorway!