(MENAFN) Moody's Investors Service announced that it has lowered Egypt's sovereign foreign currency credit rating from B3 to Caa1, with a negative outlook, reported Arabian Business.
The ratings agency attributed the move to rising concerns about the country's political conditions in addition to higher risks of a default, even though it is not imminent.
Moody's noted that the current political situation is harming Egypt's economy, as currency reserves are declining, tourism is falling, and the budget gap is widening.
It added that the continued worsening in external payments position and government finances have widened the North African country's vulnerability to economic or political shocks which boosted the risk of default.
It is worth noting that Egypt is rated at B-minus with a negative outlook by Standard & Poor's and at B with a negative outlook by Fitch Ratings.
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