Go Finance Reporting Paris - Rating agency Standard & Poor's downgraded the debt of Libya, a day after Fitch Ratings does the same thing where the oil-rich country is currently experiencing unrest.
Standard & Poor's lowered its long-term rating from A-to Libya BBB +, and placed in the position creditwatch with the intention of further downgrades in the near future. Previously, the rating agency Fitch Ratings on Monday downgraded the curve of Libya's debt to BBB + BBB.
"We hope that the violence of civil unrest that occurred in eastern Libya, and especially the city of Benghazi, the last few days will survive. Where the unrest has now spread to the capital Tripoli," the rating agency stated in its report, quoted by AFP on Wednesday (02/23/2011).
Statement S & P added when Libyan leader Moamer Kadhafi apparently continues to maintain support in Tripoli that the longer the rioting continued. And caused a higher political risk which makes the instability spread throughout the country.
Standard & Poor's noted that the Libyan government has significant flexibility to expand their social spending. In addition, the government surplus is estimated at 11.5 percent of production, supported by the current fiscal revenue from oil prices that more than USD100 per barrel.
"However, there is no quick resolution due to the current crisis. We believe that the risks to macroeconomic stability in Libya is likely to grow," he said. (GoFinance)
No comments:
Post a Comment