Standard & Poor’s Global Ratings (S&P), the international rating agency, raised Lebanon’s long-term local currency (LC) sovereign rating to ‘CCC’ from ‘CC’ on August 15, 2025. S&P said the upgrade reflects modest improvement in managing local debt—helped by two years of budget surpluses and progress on crucial reforms for a potential IMF deal. However, it warned that default risks remain due to spending pressures, restricted sovereign borrowing options, governance gaps, strained banking sector liquidity, and weak growth conditions.
The agency also lifted Lebanon’s long-term LC outlook rating to “Stable” from “Negative”, citing reform momentum, despite major policy challenges including weak growth, fiscal strain, security risks, and reconstruction demands.
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S&P Upgrades Lebanon’s Long-Term Local Currency Rating to CCC