Iran's plans for a first Eurobond since its 1979 Islamic revolution have been thrown into disarray after Moody's Investors Service withdrew its sovereign ratings because of US government concerns that the ratings were inconsistent with US sanctions.

The unprecedented move will deal a further blow to the Islamic Republic's plans to tap the international capital markets for the first time. Iran mandated BNP Paribas and Commerzbank at the end of May to lead manage a €300m ($282m) to €500m three to five-year bond.