CAIRO (AP) — Fitch Rating on Friday revised down its outlook for Egypt, dropping it to “negative” as mass protests in the country turned violent, engulfing the capital and other cities in the most serious challenge to President Hosni Mubarak’s regime in years.

Fitch said it was holding steady Egypt’s other ratings, including its long-term foreign currency issuer default rating, which was held at the investment grade BB+.”

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As an aside, rating agencies generally condoned the “froth” and the bubble that almost ruined us financially.

So, here is the picture:  Egyptians are taking to the streets against its government, the military is locking down cities, airports are closed, the opposition leader is under house arrest and Fitch downgrades Egypt’s “outlook”.  But Egypt’s debt paying ability is holding steady, thank G-d.  That totalitarianism for you.   Because even though people are protesting and dying for change, the bills still get paid and the palace is still resplendent.  And no situation is negative until the financial markets say so. I think that is what we have learned from these last three years.

I wonder how many people are reading the articles about the protests, etc., and how many are reading about the financial impact on debt holders.  I don’t want to know the answer, because Jack Nicholson was right in a Few Good Men, I can’t handle the truth.