2023-08-19 09:42:36
Standard & Poor’s Global decided to keep Lebanon’s foreign currency credit rating at SD/SD and the local currency credit rating at CC/C, and maintained its outlook for the long-term local currency credit rating negative.
The agency said in a statement that the current projections do not assume any significant improvement in policymaking in the near future.
She added that collecting revenues at the exchange rate on a banking platform would modestly ease financial bottlenecks from 2023.
The Lebanese pound collapsed against the dollar, losing more than 90 percent of its value due to the impact of the financial crisis that has gripped the country since 2019, which the World Bank described as one of the ten most severe crises in the history of nations, and perhaps the three most severe crises in the world since the 1850s.
The financial system in Lebanon collapsed on the impact of the crisis, which deprived depositors of access to their savings. At a time when the government estimates financial sector losses at more than $70 billion.
The International Monetary Fund recently said that if the status quo in Lebanon continues, public debt could reach 547 percent of gross domestic product by 2027.
It is noteworthy that the “SD” rating from Standard & Poor’s agency means that the country with the rating may voluntarily default on some obligations.
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