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S&P becomes second agency to cut Libyan rating - ASHARQ AL-AWSAT English Archive
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LONDON, (AP) – Standard & Poor’s has become the second credit rating agency in as many days to downgrade Libya as the country reels from days of violence, which has reportedly left over 200 people dead.

The agency said Tuesday that it is cutting its rating on Libya to BBB+ from A-, and warned that another downgrade could be in the offing.

S&P said its action reflects a reappraisal of political risks in Libya and that it expects the outbreaks of unrest to persist.

Though the agency said Libya has “significant flexibility” to increase social spending, given that it is running a surplus, it warned the risks to the country’s economic stability will grow if there isn’t a swift resolution to the current crisis.

On Monday, Fitch also cut its rating on Libya.

Asharq Al-Awsat

Asharq Al-Awsat

Asharq Al-Awsat is the world’s premier pan-Arab daily newspaper, printed simultaneously each day on four continents in 14 cities. Launched in London in 1978, Asharq Al-Awsat has established itself as the decisive publication on pan-Arab and international affairs, offering its readers in-depth analysis and exclusive editorials, as well as the most comprehensive coverage of the entire Arab world.

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