Moody's rates Egypt bonds Ba1

Moody's Investors Service said it assigned Ba1 ratings to the dollar-denominated senior unsecured bonds recently issued by the government of Egypt. These ratings are in line with the government of Egypt's existing Ba1 issuer ratings.

The outlook is stable.

The total size of the bond issuance was $1.5 billion, split into two tranches: a $1 billion tranche maturing in 2020 and a $500 million tranche maturing in 2040. The government has stated that the proceeds from the bonds will be used for general funding purposes.

The ratings are supported by the country's robust external position, well-diversified economy, favorable public debt structure and the current government's track record of economic reform, Moody's said.

Credit concerns include a wide fiscal deficit and substantial public debt, low income per capita and poor social indicators, lingering inflationary pressures and political uncertainty over the succession, the agency said.

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