Sep 12 2012
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Egypt Avoids Moody's Rating Downgrade After Near 9 Mos Review
Wednesday, Sep 12, 2012
DUBAI (Zawya Dow Jones)--Egypt has avoided a possible ratings downgrade by Moody's Investors Service after being on review for almost nine months, with the ratings firm Wednesday citing progress made towards a political transition to civilian rule and reduced political uncertainty for its decision to stay pat.
Moody's confirmed Egypt's B2 government bond ratings and maintained its outlook at negative. The review for possible downgrade was started on Dec. 21 and extended on Apr. 26, it said in an emailed statement.
The ratings firm also said a better external payments position, progress towards stabilizing government financing and macroeconomic conditions, and the formal request made by the new Egyptian government for International Monetary Fund support was behind its decision.
Moody's had downgraded Egypt in December by a step to B2--five notches below investment grade--and placed the sovereign bond rating on review for further possible downgrade, citing the installation of the fourth transitional government since the country's revolution last year.
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