Moody's cuts Egypt's rating on 'unsettled' political conditions

NEW YORK, March 21 Thu Mar 21, 2013 10:12am EDT

NEW YORK, March 21 (Reuters) - Moody's Investors Service on Thursday downgraded Egypt's sovereign foreign currency credit rating to Caa1 form B3, citing unsettled political conditions, and said risks of a default have increased.

The government's inability to secure financing from the International Monetary Fund has exacerbated a lack of predictability in the Middle East nation's economy and fiscal policies.

The outlook on the credit is negative, Moody's said in a statement.

Egypt is rated one notch higher at B-minus with a negative outlook by Standard & Poor's while Fitch Ratings has Egypt two notches higher at B with a negative outlook.