Fitch downgrades Lebanon’s long-term foreign-currency IDR to ‘RD’ – ZAWYA

Fitch downgrades Lebanon’s long-term foreign-currency IDR to ‘RD’ – ZAWYA

The government statement is not explicit on whether debt restructuring will involve local-currency debt (just over 100% of GDP), as well as the stock of Eurobonds (USD31 billion, approaching 60% of GDP).. For now, we maintain the Local-Currency IDR at 'CC'.. The rating would be downgraded to 'RD' in the event that the government defaults on the Lebanese pound debt before any restructuring announcement.. Lebanon has an ESG Relevance Score of 5 for Creditors' Rights as willingness to service and repay debt is highly relevant to the rating and a key rating driver with a high weight.. Lebanon has an ESG Relevance Score of 5 for Political Stability and Rights as World Bank Governance Indicators have the highest weight in Fitch's SRM and is highly relevant to the rating and a key rating driver with a high weight.. Lebanon has an ESG Relevance Score of 5 for Rule of Law, Institutional Regulatory Quality and Control of Corruption as World Bank Governance Indicators (for which Lebanon scores well below peers) have the highest weight in Fitch's SRM and is highly relevant to the rating and a key rating driver with a high weight.. Lebanon has an ESG Relevance Score of 4