Khalil Says Steps Needed after Lebanon Rating Downgraded
A report by Moody's Investors Service that downgraded Lebanon's long-term investment ratings reflects the need for quickly forming a new government and implementing reforms, caretaker Finance Minister Ali Hassan Khalil said on Tuesday.
Khalil's statement came in a tweet after Moody's downgraded the Lebanon's issuer ratings to Caa1 from B3. The outlook was changed to stable from negative.
Moody's said its decision 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."
Lebanon's economy has been under pressure with a debt of $85 billion equal to 150 percent of its GDP and little growth.
Making things worse, the country has been without a government since May.