Egyptian pound falls to 8 year low after S&P rating cut

The Egyptian Pound Fell to 8-year lows (6.1785) after rating agency S&P cut the country's long term credit rating to B- yesterday, the Bloomberg website reported on Tuesday. The Currency lost 0.1\% to 6.1785, heading for lowest close since Dec.2008, according to prices compiled by Bloomberg. Egypts long-term credit rating was cut to the same junk level as Greece by Standard & Poors as escalating political tension in the North African nation may render aid from the International Monetary Fund 'inactive.' The most-populous Arab countrys 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 moredowngrades should political instability result "in a sharp deterioration of economic indicators such as foreign exchange reserves or the governments deficit," S&P said. Egypts benchmark bonds were little changed.