Lebanon’s Finance Ministry announced Tuesday that credit rating agency Moody’s has maintained Lebanon’s credit rating at Caa1, but warned of further downgrade in three months.
Moody’s said Lebanon’s credit rating will be under supervision and it will be further downgraded within three months if the country does not witness any improvement economically and financially, according to the ministry’s statement.
“Meanwhile, Moody’s will evaluate the government’s performance and its ability to approve the 2020 budget,” it said.
The Lebanese government, currently discussing the 2020 state budget, has vowed to take additional measures to those adopted in the 2019 budget.
However, economists expressed their doubt about the government’s seriousness in adopting real measures to curb the budget deficit remarkably in the 2020 budget.
Fitch, another major international credit rating agency, downgraded Lebanon’s credit rating from B- to CCC last month, while Standard & Poor’s maintained the country’s rating at B-.