On the thirteenth of February, the Standard & Poor’s credit rating agency raised Lebanon’s long-term sovereign credit rating denominated in the Lebanese pound by one notch, to become “CCC+” from “CCC”, while maintaining the short-term rating at the “C” level, and giving a stable future outlook.
On the other hand, the agency kept its assessments of foreign currency-denominated debt at the “SD/SD” level (a rating that indicates selective default).
This improvement in the rating reflects the strengthening of the Lebanese government’s ability to meet its financial obligations in Lebanese pounds, thanks to achieving financial surpluses over three consecutive years, in addition to the progress made in the banking and financial reforms necessary to reach a potential financing agreement with the International Monetary Fund.
The agency noted that the Lebanese government has already begun implementing fundamental reforms in both the banking sector and public finance, but warned that the speed of progress may remain relatively slow, due to internal political difficulties and the proximity of parliamentary elections scheduled to be held in May 2026.
In addition, the agency noted that despite the difficult financial constraints, the government continued to commit to paying its commercial obligations in local currency regularly, and was able during 2025 to pay all interest arrears owed to the Bank of Lebanon.
