Moody's downgrades Egypt

Moody's Investors Service said it downgraded Egypt's government bond ratings by one notch to B2 from B1 and placed the rating on review for further possible downgrade.

The ratings reflect Egypt's ongoing unsettled political situation, which continues to undermine investor confidence, Moody's said.

The ratings also consider the deterioration in the country's external balance-of-payments position, which is exacerbated by the continued loss of official foreign-exchange reserves, the agency said.

The ratings also take into account the increasing pressure on Egypt's government finances, thereby elevating refinancing risks, Moody's added.

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