Egyptian government bonds are in decline after Moody’s downgraded the country’s credit rating

Denominated Egyptian government bonds in Dollars fell on Wednesday after rating agency Moody’s downgraded Egypt’s credit rating one notch from B2 to B3 on Tuesday, citing a drop in its foreign exchange reserves and shock-absorption capacity.

The bond fell as low as 1.2 cents, with the 2029 maturity falling to 81.233 cents as of 08:45 GMT, according to Tradeweb data.

Moody’s changed its outlook for Egypt from negative to stable.

Egypt continues to face a foreign currency shortage despite allowing the Egyptian pound to depreciate sharply in recent months.