Egypt Outlook Cut to Negative by Moody's on Restructuring Risks.

Moody's Investors Service has downgraded Egypt's credit outlook to negative, while maintaining its Caa1 rating. The downgrade is due to increasing risks that Egypt's credit will continue to weaken, given its weak debt metrics and exposure to foreign exchange and interest rate risks. Despite ongoing fiscal consolidation efforts and official sector support, there are concerns about the nation's credit profile amid difficult macroeconomic and exchange rate rebalancing. Egypt is currently in talks with the International Monetary Fund to potentially double its $3 billion rescue program. A rating downgrade could occur if there are concerns about the government's ability to service its local currency debt or boost foreign reserves, while a rating upgrade could happen if the government generates foreign exchange inflows. [Extracted from the article]