Egypt’s credit outlook was cut to negative from stable at S&P Global Ratings, which expected continued foreign exchange shortages as aid from Gulf Arab allies deteriorate because of the slump in their oil-related revenue. The country’s B- rating was maintained by S&P, putting it on par with Argentina, Greece and Pakistan; that is five levels lower than pre-2011. “Egypt’s external and fiscal vulnerabilities might increase further over the next 12 months,” S&P said in a statement. “This could dampen the country’s economic recovery and exacerbate sociopolitical challenges.” S&P said it may lower the rating if foreign exchange reserves decrease more quickly than currently expected, or if current account financing, including from GCC countries, become less forthcoming. “Deteriorating domestic fiscal funding options, increased political risk, or a weaker institutional environment could also lead us to lower the ratings.” (Bloomberg)