Unrest risks spreading to Algeria, Jordan

Egypt’s unrest may spread to other countries, including Algeria and Jordan, that have high unemployment and less leeway to boost public spending because of high debt and budget deficits, Standard & Poor’s said today.

The rating agency is “relatively confident” that Egypt will pay its debt obligations, Kai Stukenbrock, director for sovereign and international public finance ratings, said in an interview in Dubai today.

There is a 50 per cent chance that S&P will cut Egypt’s credit rating further, he said.