The change reflects the “elevated political uncertainty” in Egypt following an uprising that toppled President Hosni Mubarak in February and the weakened macroeconomic outlook, Nondas Nicolaides and Yves Lemay, wrote in a statement today.

“Even though Egypt’s ruling military regime has committed to holding democratic elections in order to meet people’s demands, Moody’s believes that there are still elevated risks involved in an orderly transition toward democratic rule,” Limassol, Cyprus-based Nicolaides was cited as saying.

Moody’s expects the country’s economy to slow, growing around 2 percent in the next 12 to 18 months due to a decline in tourism, and direct foreign investment.