PARIS: Rating agency Standard&Poor’s downgraded debt issued by Tunisia by two notches yesterday because of rising opposition to the government.
Tunisia’s opposition have been calling for the resignation of the Islamist-led government and the dissolution of the National Constituent Assembly since the assassination in July of opposition MP Mohamed Brahmi, the second political killing since February.
The credit rating agency downgraded its notation for Tunisian long-term debt from “BB-” to “B”, indicating low confidence that the country will be able to respect its debt obligations. And S&P said the outlook was negative, meaning there was one chance in three that it would lower the rating again in the next 12 months if the economic and social situation threatened reforms to support economic growth. S&P said it estimated that general government debt would rise from 44 percent of gross domestic product in 2012 to 50 percent in 2016.
AFP
