Moody's credit rating downgrade puts Lebanon on par with Venezuela
The major credit rating agency said Lebanon is likely to default on its debt due to a lack of reform and the collapse of the Lebanese pound.
A major international credit rating agency downgraded Lebanon’s projected ability to pay back debt to a level indicating probable loss of investment yesterday. It is the latest blow to Lebanon’s efforts to emerge from its worst economic crisis in decades.
Moody’s Investors Service, one of the big three credit rating agencies, lowered Lebanon's issuer rating to a C — the lowest rating possible, on par with Venezuela — the firm said Monday.
“The country is steeped in an economic, financial and social crisis, which very weak institutions and governance strength appear unable to address,” Moody’s said in a press release.
Lebanon is in the midst of a major economic crisis. Its currency has plummeted against the US dollar, and both unemployment and job losses are up. There are continued anti-government protests in the country, and Lebanon is now contending with a surge in COVID-19 cases. Lebanon already defaulted on $1.2 billion in debt in March.
