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Egypt downgraded as political tensions continue

An Egyptian protester opposing president Mohammed Morsi waves Egyptian flags as he stands atop a barricade securing the Presidential Palace prior to the start of a demonstration on December 18, 2012 in Cairo, Egypt.

Standard & Poor's downgraded Egypt's credit rating on Monday, citing ongoing political tensions in the country. The move comes as President Mohammed Morsi's party pushed through a controversial new constitution. Early unofficial results suggest more than 60 percent of voters approved the document.

According to the BBC's Bethany Bell in Cairo, Morsi's precarious political position could make economic reforms difficult to pass and further delay Egypt's International Monetary Fund loan program. Earlier this month, Morsi pulled back on unpopular austerity measures, postponing a $4.8 billion IMF loan.

About the author

Bethany Bell is a reporter for the BBC.

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