Earlier today creditÃ‚ ratings agency MoodyÃ¢â‚¬â„¢s Investors Service Inc. downgraded EgyptÃ¢â‚¬â„¢s government bond ratings and changed its outlook to negative from stable.
MoodyÃ¢â‚¬â„¢s said the decision was prompted by the increased political event risk and concern that the policy response could undermine EgyptÃ¢â‚¬â„¢s already weak public finances.
Just last week Aon warned that the level of political risk is rising in more countries than it is declining this year, leading to a greater need for political risk insurance cover.
A total of 19 countries were downgraded in AonÃ¢â‚¬â„¢s 2011 political risk map, while 11 countries were upgraded.
Political risk will continue to be a major influencer for businesses transacting in emerging markets in 2011, according to Aon.
The map measures the political risk of 211 countries and territories based on the level of risks such as currency inconvertibility and exchange transfer; strikes, riots and civil commotion; war; civil war; sovereign non-payment; political interference; supply chain disruption and legal and regulatory risk.