Lebanon rating raised by S&P to CCC+ with stable outlook

Standard & Poor’s raised Lebanon’s long-term local-currency sovereign rating to CCC+ and assigned a stable outlook, signaling its assessment of how the government may handle domestic obligations going forward.

In its report, the agency said it expects local-currency sovereign debt to be excluded from any future government debt restructuring plan, a key element behind the decision affecting the Lebanon rating on the local-currency side.

What the local-currency upgrade suggests

While highlighting a potential distinction between domestic and external liabilities, the agency also noted it does not anticipate significant near-term progress on a long-awaited broader debt restructuring, underscoring continued pressure on overall fiscal conditions.

At the same time, Standard & Poor’s kept Lebanon’s foreign-currency rating unchanged at SD, reflecting persistent challenges in external debt dynamics despite any improvement linked to the Lebanon rating in local currency.

IMF talks and next steps

Separately, Lebanese Prime Minister Nawaf Salam met an IMF delegation to discuss draft legislation on banking sector resolution, financial regularization, and the recovery of deposits.

Salam described the meeting as constructive and said the discussions covered IMF feedback and practical steps toward reaching an agreement.

Lebanon has been grappling with a deep financial and economic crisis since November 2019, and the IMF has repeatedly emphasized reforms as a prerequisite for a final deal—an important factor that could influence the Lebanon rating trajectory across categories over time.