Lebanon’s local-currency credit rating upgraded to CCC+ with stable outlook, S&P says

Standard & Poor’s on February 13, 2026, raised Lebanon’s long-term sovereign credit rating in local currency to “CCC+” from “CCC,” while affirming the short-term rating at “C” and assigning a stable outlook. At the same time, the agency kept Lebanon’s foreign-currency ratings at “SD/SD” (selective default).

The upgrade reflects an improvement in the government’s ability to service its local-currency obligations, supported by three consecutive years of fiscal surpluses and progress on banking and financial reforms required to reach a potential financing program with the International Monetary Fund.

S&P said the government has begun implementing key reforms in the banking sector and public finances, but warned that the pace of progress could remain limited due to domestic political complexities and the approach of parliamentary elections scheduled for May 2026.

The agency also noted that despite tight fiscal space, the government has continued to meet its domestic commercial obligations in local currency and, in 2025, fully settled outstanding interest arrears owed to the central bank.