New York-based investment banking company Morgan Stanley has moved Egypt’s sovereign credit to a “dislike stance” from a “neutral” rating and noted that the cash-strapped country will face what it termed “mounting risks” in the coming months, Bloomberg reports. The bank argued that the upcoming December elections exacerbate the situation. President al Sisi Monday October 2 announced plans to seek another term in office, a move to extend his rule over the country since 2014. The North African country, the bank notes, has lost favor with foreign portfolio investors who once saw it as a prime destination for hot money that kept its currency stable and boasted some of the world’s highest interest rates when adjusted for prices. However, honey moment turned sour as investors turned sharply against riskier assets with the Russian-Ukraine war last year, forcing several rounds of devaluation in Egypt that touched off inflation.
