Moody's rating agency announced yesterday that it was downgrading Egyptian debt to B1 because of the weak economic situation in the country, the deteriorating financial situation and the absence of political stability. It warned that its expectations about Egypt remain negative and said that debt classified as B1 is speculative and places higher risks on creditors.

In the meantime, the Egyptian deputy prime minister and minister of finance Hazem al-Biblawi declared that increasing government revenues will not be achieved by higher taxes but by fighting tax evasion and preventing the smuggling of cigarettes and liquors.

Source: alquds.com, October 27, 2011; ahram.org, October 28, 2011