Moody’s one of the top 3 credit ratings agencies is maintaining Lebanon’s rating of Caa1 , but has warned of a possible downgrade within three months unless there are positive changes to the financial situation in the country, the Finance Ministry said Tuesday.
In a statement, the Finance Ministry said that Moody’s will assess the government’s performance, including the 2020 budget, during the three month window.
The draft budget is currently being discussed by the Cabinet and scheduled to be sent to Parliament later this month and passed before the end of the year.
In August, Standard and Poor’s maintained Lebanon’s B-minus rating with a negative outlook, while Fitch downgraded Lebanon from B-minus to CCC. Moody’s downgraded Lebanon to Caa1 in January. The agency defines the Caa category, which comprises Caa1, Caa2 and Caa3, as having “very high credit risk.”