BELIEF, أزمة الدين, الدين العام, الملخص الاقتصادي

Fitch Confirms Restricted Default and Withdraws Lebanon of Its Credit ratings

11:30 | 31 تموز 2024LIMS output
0
Fitch

Fitch Ratings has affirmed Lebanon’s credit rating at “RD” (Restricted Default), while simultaneously announcing the withdrawal of its credit ratings for the country, citing a significant lack of critical information. The move underscores the deepening challenges faced by Lebanon, a nation grappling with a protracted economic crisis and an ongoing default on its debt obligations.

LIMS explained that the decision to maintain Lebanon’s “RD” rating is rooted in the country’s persistent state of default. Lebanon remains in default following its failure to meet the principal payment on a Eurobond that matured on March 9, 2020. This default marked a turning point in Lebanon’s financial crisis, which has since been exacerbated by the government’s inability to resume interest payments on the Banque Du Liban’s (BDL) holdings of local-currency securities.

The decision to withdraw Lebanon’s credit ratings adds another layer of concern. Fitch has pointed to the unavailability of key economic and fiscal data as the primary reason for this withdrawal. The Central Administration of Statistics, the national body responsible for providing such data, has not released updated national accounts and fiscal information since 2021. Without access to current and comprehensive data, the agency determined that it could no longer provide a reliable assessment of the country’s creditworthiness.

The withdrawal of Lebanon’s ratings is a stark indication of the country’s deepening financial opacity. The move by Fitch may further isolate Lebanon from global financial markets, making it even more challenging for the country to secure the external support needed to stabilize its economy.

  • Negative Credit Rating for Lebanon and Serious Implications, July 22, 2024: Lobnanelhor,  Audio Interview AR
  • The Deposit Crisis in Lebanon Continues… With No Solutions in Sight, July 17, 2024: Eram, Article AR
  • Experts: The Prospect of Resuming Borrowing From Lebanese Banks Is Distant Due To Issues Concerning Currency Liquidity. July 2, 2024: Al machhad, Video Interview AR
  • After Losing Trust In Banks… Where Does The Lebanese Hide Their Money? July 31, 2024: Lebanon24, Article AR