Moody's has taken up Egypt's ratings

Egyptian riots have led to downgrade of the country's sovereign debt obligations. Moody's changed its rating from Ba1 to Ba2, adding a negative outlook. Rating on liabilities in foreign currency fell from Baa2 to Baa3 on currency bank deposits from Ba2 to Ba3.

Solution Moody's is due to the recent anti-government protests in the country, which increased the political risks and fears of deteriorating financial condition Egypt. It is likely that the current downgrade is just the beginning.

Moody's experts note that Egypt is in a difficult political and socio-economic situation. There is a possibility of a loosening of fiscal policy, which the government will resort to in order to reduce the level of public discontent.

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