Egypt's sovereign rating was cut to seven levels below investment grade by Moody's Investors Service, which said political stalemate was hindering an (more)
Egypt's sovereign rating was cut to seven levels below investment grade by Moody's Investors Service, which said political stalemate was hindering an economic recovery. Egyptian dollar bonds plunged.
The Arab country's government bonds were reduced by one level to Caa1 with a negative outlook, the New York-based ratings company said in a statement. That's the sixth cut in Egypt's rating since the 2011 uprising that ousted Hosni Mubarak, taking it to the same level as Pakistan and one level below Argentina.
The cut reflects "deep polarization" of the country's politics with "repeated episodes of violent civil unrest," Thomas Byrne, a Moody's analyst, said in the report. "This polarization is in turn impeding the government's ability to govern effectively, restore social stability and avert a worsening of the already severe disruption to the economy."
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