Moodys: Egypt still on review

Moody's Investors Service said it extended the time frame of its review of Egypt's B2 government bond ratings for possible downgrade in order to incorporate the credit implications of the country's upcoming presidential elections and its ongoing negotiations with the IMF.

Moody's said it had expected the terms of IMF financial support package to be released earlier. However, according to the agency, negotiations have become contingent on the upcoming presidential elections and the ability of Egypt to form a stable government.

As a result, Moody's said it does not expect to conclude its review before June.

The agency said the main factor behind Moody's ongoing review for possible downgrade of Egypt's B2 sovereign bond rating is the continued unsettled political conditions following the January 2011 revolution which overthrew the government of President Hosni Mubarak.

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