Global rating agency S&P raised Lebanon’s long-term local currency credit rating to “CCC” from “CC,” with a “stable” outlook. However, it affirmed Lebanon’s foreign currency rating at “Selective Default.”
This upgrade reflects the government’s improved ability to service its domestic commercial debts, supported by fiscal surpluses over the past two years and progress in reforms needed to reach a new program with the International Monetary Fund. The term “Selective Default” describes a situation where an entity (a state, company, or institution) defaults on one type of financial obligation while continuing to meet others.
Source (Al-Sharq Al-Awsat Newspaper, Edited)
