Moody's may lower Egypt bonds

Moody's Investors Service said it placed Egypt's B2 government bond ratings on review for possible downgrade.

The downgrade review is due to the re-emergence of unsettled political conditions, despite Egypt's transition to civilian rule in 2012, Moody's said.

The downgrade review also reflects the heightened uncertainty surrounding the government's ability to secure financial support from the International Monetary Fund, the agency said.

Egypt's B3 foreign-currency bank deposits, Ba3 country ceiling for foreign-currency bonds and Ba1 local-currency bond and deposit ceilings remain unchanged.

But, if the agency decides to downgrade Egypt's government bond rating, this will likely prompt the lowering of Egypt's ceilings, Moody's said.

The short-term country ceiling for foreign-currency bonds remains unaffected at not-prime, the agency added.

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