Egypt's Bond Ratings Cut by Moody's

Updated from 4:42 a.m. EST

NEW YORK ( TheStreet) -- Egypt's government bond ratings were downgraded by Moody's as the political unrest in the country reached a seventh day.

The rating agency downgraded Egypt's government bond rating to Ba2 from Ba1. Moody's also changed the outlook to negative from stable.

Last week, rating agency Fitch downgraded its outlook on Egypt to negative from stable.
Demonstrators deface a poster of Egyptian President Hosni Mubarak in Alexandria, Egypt.

"Today's rating action was prompted by the recent significant rise in political event risk and concern that the policy response could undermine Egypt's already weak public finances," Moody's said Monday, in a statement.

The anti-government protests in Egypt were spooking investors across the globe. Asian shares finished lower, stocks in Europe were trading to the downside and oil rose to close to $90 a barrel on fears of a disruption in the global oil supply infrastructure.

Stock futures in the U.S. were bucking the trend Monday morning, moving slightly higher.

It appears Egypt's opposition groups are unifying behind Nobel peace laureate Mohamed ElBaradei as the best chance to oust President Hosni Mubarak, the Wall Street Journal and other outlets report.

-- Written by Joseph Woelfel

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