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

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

Ratings agency did not assign outlook, saying there was 'very high likelihood of significant losses for private creditors'





























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





















July 27, 2020



July 27, 2020













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



"The C rating 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.



Moody's, which did not assign an outlook, said the country was in an economic, financial and social crisis that its weak institutions seemed unable to address.



"The collapse of the currency in the parallel market and the concomitant surge in inflation fuel a highly unstable environment," it said.



"In the absence of key steps toward plausible economic and fiscal policy reform, official external funding support to accompany a government debt restructuring is not forthcoming."



Lebanon is in its worst financial crisis since