Moody's reviews Egypt

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

The action was prompted by the reemergence of unsettled political conditions, despite Egypt's transition to civilian rule in 2012, and the heightened uncertainty surrounding the government's ability to secure financial support from the International Monetary Fund, according to the agency.

The possible downgrade also stems from the recent imposition of capital controls by the Central Bank of Egypt in order to limit foreign-currency cash withdrawals from the country's banks as well as the continued rise in the Egyptian government's already high fiscal financing costs, the agency noted.

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