Standard & Poor (S&P) Global Ratings upgraded Lebanon’s long-term local-currency sovereign credit rating to “CCC+” from “CCC,” with a stable outlook, the agency said Friday.  This marks the second consecutive upgrade for Lebanon, following a move from “CC” to “CCC” last year.  S&P, however, affirmed the short-term local-currency rating at “C” and maintained the foreign-currency rating at “SD” (selective default), as Lebanon has yet to restructure its external debt. The country defaulted on roughly $31 billion in Eurobonds (dollar-denominated debt instruments) in March 2020.  According to the agency, the upgrade reflects the government’s improving capacity to service local-currency debt, supported by three consecutive years of fiscal surpluses and continued progress on reforms required to secure a new program with the International Monetary Fund (IMF).  “Lebanon’s government has begun key banking sector and fiscal reforms required to reach an agreement on a potential funded program with the IMF,” it said.  Authorities adopted a bank resolution law in 2025 and approved a draft financial gap law, though the latter has yet to be passed by Parliament and will require amendments to align with IMF and international standards.  “Despite very limited fiscal space, we understand the government has continuously remained constant on its local-currency commercial debt obligations and has also fully repaid domestic interest arrears to the Banque du Liban (BDL), Lebanon’s central bank, in 2025,” S&P further noted.  Still, the agency cautioned that progress on reforms is likely “to remain modest,” citing Lebanon’s complex political landscape and the approach of upcoming parliamentary elections in May 2026. It also said it does not expect meaningful progress on the long-delayed external debt restructuring in the near future. (ICE BEIRUT)

Fonte notizia: L'Orient Today