Moody's cuts Egypt to B1

Moody's Investors Service said it downgraded Egypt's government bond ratings by one notch to B1 from Ba3.

The outlook remains negative.

Moody's said the action was prompted by the country's ongoing economic weakness and financial deterioration, as reflected in the sharp loss in official foreign exchange reserves since the beginning of this year, the likelihood of continued macroeconomic weakness and instability, and the rising pressures on budgetary spending and financing.

The agency said the continued unsettled political conditions and the uncertainty over the transition to a stable, civilian government also contributed to the downgrade.

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