waltermasoni
Caribbean Trader
Rating Action:
Moody's downgrades Lebanon's rating to Caa1, changes outlook to stable
21 Jan 2019
New York, January 21, 2019 -- Moody's Investors Service has today downgraded the Government of Lebanon's issuer ratings to Caa1. The outlook was changed to stable from negative.
Moody's decision to downgrade the ratings to Caa1 reflects the heightened risk that the government's response to increased liquidity and financial stability risks will include a debt rescheduling or other liability management exercise that may constitute a default under Moody's definition. In December 2018 Moody's changed the outlook on Lebanon's then B3 issuer ratings to negative reflecting rising liquidity and financial stability risks.
Compared with Moody's previous assessment, this higher probability of a default event denotes the rising risk that the government, possessing increasingly limited fiscal and monetary levers to contain or reverse its high debt and interest burden amid deteriorating domestic and external funding conditions, may seek to enhance debt sustainability through other means. The ongoing delay in the formation of a government is adding to Lebanon's pressures.
Moody's downgrades Lebanon's rating to Caa1, changes outlook to stable
21 Jan 2019
New York, January 21, 2019 -- Moody's Investors Service has today downgraded the Government of Lebanon's issuer ratings to Caa1. The outlook was changed to stable from negative.
Moody's decision to downgrade the ratings to Caa1 reflects the heightened risk that the government's response to increased liquidity and financial stability risks will include a debt rescheduling or other liability management exercise that may constitute a default under Moody's definition. In December 2018 Moody's changed the outlook on Lebanon's then B3 issuer ratings to negative reflecting rising liquidity and financial stability risks.
Compared with Moody's previous assessment, this higher probability of a default event denotes the rising risk that the government, possessing increasingly limited fiscal and monetary levers to contain or reverse its high debt and interest burden amid deteriorating domestic and external funding conditions, may seek to enhance debt sustainability through other means. The ongoing delay in the formation of a government is adding to Lebanon's pressures.
