Moody's Investors Service on Thursday downgraded Egypt's sovereign foreign currency credit rating to Caa1 from B3, citing unsettled political conditions, and said risks of a default have increased. The government's inability to secure financing from the International Monetary Fund has exacerbated a lack of predictability in the Middle East nation's economy and fiscal policies. The outlook on the credit is negative, Moody's said in a statement. Egypt is rated one notch higher at B-minus with a negative outlook by Standard & Poor while Fitch Ratings has Egypt two notches higher at B with a negative outlook.