Morgan Stanley Turns Bearish on Egypt, Warns Risks Building
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Morgan Stanley is turning bearish on Egypt as the cash-strapped nation faces what the US bank called “mounting risks” in the coming months.
Egypt’s sovereign credit has been moved to a “dislike stance” from a “neutral” rating by Morgan Stanley. The decision was part of a report in which the bank removed its preference for higher-yielding emerging-market debt over investment-grade securities, saying the increase in US inflation-adjusted yields has reduced the relative attractiveness of riskier assets.