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REPORT: Moody's warns new Lebanon political vacuum would be 'credit negative'

Lea Fayad

Author: Lea Fayad

Breaking Headlines

07-11-2017 | 05:34

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REPORT: Moody's warns new Lebanon political vacuum would be 'credit negative'

Rating agency Moody’s warned on Tuesday that reopening Lebanon’s political vacuum after the resignation on Saturday of Prime Minister Saad Hariri would damage the tiny country’s credit rating.

“A drawn-out political stalemate less than a month after the government passed its first budget in 12 years would undermine recent institutional improvements and expose the banking system to a loss in confidence,” it said in an emailed note.

“Any loss of confidence in the banking system or in the stability of Lebanon’s institutions leading to a significant slowdown in private sector deposit inflows or outright outflows would be credit negative,” it added.

REUTERS

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