Moody's lowers Egypt bonds

Moody's Investors Service said it downgraded Egypt's foreign- and local-currency government bond ratings by one notch to Ba3 from Ba2.

The outlook remains negative.

The downgrade is due to the prolonged political uncertainty in Egypt and concerns about whether a transition to an effective and stable government will be achieved, Moody's said.

The ratings reflect the adverse impact this political uncertainty is having on the country's fiscal position and broader economic performance, the agency said.

Also affecting the ratings is the deterioration of the political situation in Libya, which has negative implications for Egypt's economy and security, Moody's added.

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