Moody's downgrades Tunisia

(MENAFN- Khaleej Times) International ratings agency Moody's downgraded Tunisia's sovereign debt rating one notch to Ba2 and placed it on negative outlook on Thursday, citing "persistent political uncertainty and the risk of instability." Moody's said the move, which follows its decision in February to drop the rating to Ba1, primarily reflected the political tensions plaguing the north African nation since its 2011 revolution. The other two factors were the fragile state of undercapitalised government-owned banks and external pressures on Tunisia's balance of payments and government finances.