S&P maintains negative outlook on Lebanon's local currency ratings, citing Israel-Hamas war's impact on security, economy

On Friday, Standard & Poor's (S&P) Global Ratings affirmed its "SD/SD" long -and short-term foreign currency ratings on Lebanon. 

"We also affirmed our 'CC/C' long- and short-term local currency ratings on the sovereign. The outlook on the long-term local currency rating remains negative. The transfer and convertibility assessment on Lebanon remains 'CC,'" it said.

The agency also highlighted: "In our view, spillover effects from the war between Israel and Hamas will keep domestic security risks heightened and weigh on economic activity."

It also pointed out that the ongoing political deadlocks keep on undermining the progress of Lebanon's reforms and government debt restructuring after its default on commercial debt about four years ago.