Moody's places Egypt's B3 ratings on review for downgrade

Ratings agency Moody's placed Egypt's B3 foreign-currency and local-currency issuer rating on review for downgrade on Tuesday, citing slower-than-anticipated progress with its state-owned asset sale.

Egypt is facing a persistent shortage of foreign currency despite allowing the Egyptian pound to depreciate sharply in recent months.

Moody's cited risks to Egypt's financing plans as a major reason for placing the country's currency issuer ratings on review for downgrade.

Slow progress with its asset sale strategy weakens Egypt's foreign exchange liquidity and erodes confidence in its currency, the ratings agency said.

The asset sale is a key component of the country's deal with the International Monetary Fund (IMF).

(Reuters)