Moody’s downgrades Lebanon to lowest rating as economic crisis deepens – The National

Moody’s downgrades Lebanon to lowest rating as economic crisis deepens – The National

The ratings agency did not assign an outlook to the county and said there is a 'very high likelihood of significant losses for private creditors'





























Lebanon faces its worst financial crisis since independence in 1943. Alamy











Moody's Investors Service downgraded the Lebanese government's issuer rating to C, its lowest grade and on par with Venezuela, saying there is a high likelihood of "significant losses" for private creditors.



The cut from Ca "reflects Moody's assessment that the losses incurred by bondholders through Lebanon's current default are likely to exceed 65 per cent," the ratings agency said on Monday.



Facing its worst financial crisis since the country's independence in 1943, Lebanon defaulted on $31 billion (Dh114bn) in eurobonds in March and then turned to the International Monetary Fund in May for a $10bn bailout package.



With IMF negotiations stalled, the economy has deteriorated further. The currency, pegged to the dollar since 1997, has plunged more than 80 per cent, inflation has soared and unemployment increased. The erosion of the Lebanese pound's value has led to a surge in inflation which reached about 90