Egypt’s long-term credit rating was cut to seven levels below investment grade at Standard & Poor’s, the second-lowest of any country rated by the agency, which cited increased financing pressures.

The country’s long-term sovereign credit rating was lowered one notch to a record low CCC+ from B-, and the short-term rating was cut four levels to C from B. The long-term rating is one level above Cyprus and one lower than Greece and Pakistan, according to data compiled by Bloomberg.

S&P has cut Egypt six times since the start of the revolt that ousted Hosni Mubarak in 2011, which has raised the country’s borrowing costs, widened the budget deficit and weakened Egypt’s currency to a record low. Two years of talks have failed to secure an International Monetary Fund loan, and the agency said the country’s ability to meet its fiscal targets and ease external pressures has deteriorated.

“The downgrade reflects our view that the Egyptian authorities have yet to put forward — either to the Egyptian population or the international donor community — a sustainable medium-term strategy to manage the country’s fiscal and external financing needs,” analysts Trevor Cullinan and Dima Jardaneh wrote in the statement released today.

Egypt’s annual general government deficit is likely to average close to 11 percent of economic output over 2012-2016, S&P said. The budget deficit may widen to as much as 11.7 percent in the year that ends in June from 11 percent last year because of the delay in enacting fiscal changes, former Finance Minister El-Morsi Hegazi said last month.

S&P said its outlook for Egypt is stable. “We expect financing pressures to remain elevated and comprehensive donor support, including from the International Monetary Fund, to remain elusive,” S&P said.

Bloomberg