Report: Cabinet to Meet in Beiteddine amid S&P Downgrade Concerns

An agreement was reached between senior officials to call the Cabinet for a meeting on Thursday at the summer presidency residence in Beiteddine to discuss the latest political and economic developments, al-Joumhouria daily reported on Tuesday.

It said preparations are underway between Director General of the Presidential Palace and the Secretary General of the Council of Ministers to arrange the agenda that will be circulated to the ministers today, added the newspaper.

President Aoun moved last week to Beiteddine.

After around a one-month government deadlock over the Qabrshmoun incident, the Cabinet is expected to restore its activity to face a new economic challenge.

According to Goldman Sachs Group Inc., Standard & Poor's Global Ratings could downgrade Lebanon’s sovereign ranking to CCC on Friday, “increasing the risk of its sovereign bonds."

Analysts at Goldman Sachs said in a note last week that "the continued deterioration in Lebanon's foreign liquidity suggests a possible downgrade to the CCC ranking.”

Goldman Sachs said the recent political tensions threaten to disrupt Lebanon’s economic agenda and reduce investor appetite, cutting forecast for economic growth this year to 1 percent from 2.2 percent.