Egypt's Pound Dives on the Black Market as Moody's Cuts Debt Outlook
- Moody’s warns of rising risk of restructuring amid challenges
- Pound is plunging in black market as dollar scarcity persists
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Egypt’s credit outlook was cut to negative from stable by Moody’s Investors Service while the pound’s weakening on the black market accelerated, in a sign of the country’s worsening economic plight.
Moody’s affirmed Egypt’s rating of Caa1, or seven notches into junk, according to a statement late Thursday. Even as Egypt holds talks with the International Monetary Fund to increase a $3 billion rescue program, little of which has been disbursed, Moody’s warned it might be insufficient.