Economy
Lebanon Rating Cut Deeper Into Junk by Moody’s on Default Risks

Lebanon’s debt rating was cut by Moody’s Investors Service, which cited increased risks that the Middle East nation will undertake measures that may constitute a default.
The country’s credit score was lowered one step to Caa1, the rating company said in a statement. That’s seven levels below investment grade and a notch worse than the B- that S&P Global Ratings and Fitch Ratings give Lebanon. The outlook was changed to stable from negative.
Finance Minister Ali Hasan Khalil roiled bond markets this month when he told a newspaper the Lebanon may restructure its debt as part of a plan to repair its public finances. The country has been battered by sluggish economic growth, a political impasse that has left it without a functioning government for months and the war in neighboring Syria. Khalil later denied the plans and officials got together to reassure investors the country would honor its obligations on time.
“The probability has increased that a new government, once one is formed, may take measures aimed at reducing Lebanon’s very large gross financing needs involving some liability management that constitutes a default under Moody’s definition,” Elisa Parisi-Capone, a Moody’s senior analyst in New York, wrote in the statement.
Lebanon’s debt burden was 141 percent of gross domestic product in 2018, excluding domestic debt of public entities, Moody’s estimated.
The country’s dollar bonds gained on Monday after Qatar said it plans to buy $500 million of the government’s debt to support the Lebanese economy. The yield on Lebanon’s dollar debt due 2021 fell 82 basis points to 14.04 percent, according to prices compiled by Bloomberg. The rate reached 14.86 percent on Jan. 18, the highest on a closing basis since the bonds were issued in 2006.
-
News1 month ago
Offer Price, Overview, Investors: Here’s Everything You Need to Know About Asyad Shipping’s Mega IPO
-
OER Magazines1 month ago
OER, February 25
-
Automotive2 months ago
[REVIEW] A Legend Reinvented: The Nissan Patrol Y63 Blends Heritage with Modern Mastery
-
Alamaliktistaad Magazines1 month ago
Al-iktisaad, February 2025
-
Energy1 month ago
Dubai Supreme Council of Energy Unveils 5th Emirates Energy Award 2023–2025 in Muscat
-
News2 months ago
Oil Prices Rise as Investors Assess New US Tariff Threats
-
News2 months ago
Middle East Emerging as a Key Destination for Sports Tourism
-
Banking & Finance2 months ago
Alizz Islamic Bank Partners with Visa to Launch Premium Shari’a-Compliant Card Solutions
You must be logged in to post a comment Login