The international credit rating agency Standard & Poor’s has raised Lebanon’s long-term local currency rating to CCC with a stable outlook, while maintaining its foreign currency rating at SD, according to Reuters.
The agency explained that the risks of Lebanon defaulting on local debt remain, due to spending pressures, limited access to markets and weak management and governance. It also noted that liquidity restrictions in the local banking system, along with an unsupportive economic environment, further increase these risks.
Standard & Poor’s added that it does not expect any tangible progress in restructuring Lebanon’s debt in the near term, reflecting the ongoing challenges of the Lebanese economy and the constraints hindering its financial recovery.
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