Moody's says Egypt's political instability is hitting investment (Photo: Reuters)
Egypt’s continued political and financial instability is a “credit negative” for the country, Moody’s Investors Service said on Monday.
An emailed statement from Moody's said Egypt’s new cabinet is failing to address popular demands for a transition from military to civilian rule.
Banks are increasingly vulnerable to sovereign credit risk because of their high exposure to government debt, Moody's added.
Earlier this week, Standard & Poor’s said it was reviewing credit ratings on 50 banks in the Middle East and North Africa under a new set of criteria. New ratings will be made by the end of the year, Reuters reported