Hilbroy Advisory: S&P downgrades Egypt's debt rating and says it could go lower |
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By: Jean Francois Amyot Posted: 2011-02-04 22:37:31 |
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Montreal, Quebec, February 2, 2011– Hilbroy Advisory Inc.(DeutcheBörse: 2H0) Hilbroy Advisory Reports : Standard & Poor's, the third international ratings agency in under a week to downgrade its rating on Egypt to BB from BB+ and warned that another cut was possible as a week of protests demanding the ouster of the President stalled its economy.
The cuts still left the rating within the investment grade category, but reflected the increasing alarm with which investors are viewing the developments in Egypt. S&P warned that it could issue another downgrade - possibly by more than one notch - within three months. The agency also believed the rating downgrade could have a negative impact on the creditworthiness of two of Egypt's biggest banks, the National Bank of Egypt and Commercial International bank. "This is due to the fact that there is more differentiation between the levels of contagion in the Middle East," said John Sfakianakis, chief economist at the Riyadh-based Banque Saudi Fransi-Credit Agricole Group. "Markets are seeing that the contagion ... won't spill to oil-producing countries, particularly Saudi Arabia." The Saudi riyal is the most actively traded in the region and is used by foreign investors as a hedge against their Egyptian pound exposure. S&P, echoing its ratings peers, warned that the political instability and unrest will hamper Egypt's economic growth this year, in no small part because of the blow to the tourism sector. The agency also lowered its long-term and short-term local currency ratings to BB+/B from BBB/A-3, while the short-term foreign currency rating of B was unchanged. With tourism likely to take a serious hit, the 6 per cent GDP growth figure being projecting for this year seemed now to be wishful thinking. Companies have halted production and others are withdrawing their foreign staff. About Hilbroy Advisory Inc.: Hilbroy Advisory Inc. is a Canadian based advisory and consultancy services company founded in 2000. Our Company provides publicly traded and private companies, institutions and individuals with a series of advisory services enabling these companies to fully reach their corporate objectives and potential. Our specialists will customize a service package that includes reviewing, identifying and recommending a series of specific action and tasks that help their clients’ management decisions when seeking • Go Public strategy, • Debt and or equity financing • Identify prospective investors • Hire investor relations firm • Cross listing decisions • Planning road-shows and promotional campaigns. Hilbroy Advisory has established numerous international relationships over the years with Broker Dealers, Hedge Funds, Institutional Investors, High net worth Investors as well as with investor relations firms and consultants. These relationships are made available to all Hilbroy clients and our team will manage the relationships from introduction to post financing activities. Contact: Jean François Amyot HilbroyAdvisory, Inc. 1400 rue Begin Montreal, QC H4R 1X1 Important Information About Forward-Looking Statements: All statements in this news release that are other than statements of historical facts are forward-looking statements, which contain our current expectations about our future results. Forward-looking statements involve numerous risks and uncertainties. We have attempted to identify any forward-looking statements by using words such as "anticipates", "believes", "could", "expects", "intends", "may", "should" and other similar expressions. Although we believe that the expectations reflected in all of our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. A number of factors may affect our future results and may cause those results to differ materially from those indicated in any forward-looking statements made by us or on our behalf. Such factors include our limited operating history; our need for significant capital to finance internal growth as well as strategic acquisitions; our ability to attract and retain key employees and strategic partners; our ability to achieve and maintain profitability; fluctuations in the trading price and volume of our stock; competition from other providers of similar products and services; and other unanticipated future events and conditions. |
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