Lebanon Cut Deeper Into Junk by Fitch as Diaspora Dollars Dry Up - Bloomberg

Lebanon Cut Deeper Into Junk by Fitch as Diaspora Dollars Dry Up - Bloomberg:

Lebanon’s credit ranking was cut deeper into junk by Fitch Ratings as one of the world’s most indebted nations finds its finances stretched with a dwindling flow of cash from abroad.

The rating company downgraded Lebanon for the first time in three years, taking the sovereign down two notches to CCC, according a statement on Friday. Meanwhile, S&P Global Ratings affirmed Lebanon’s rating at B-, six steps below investment grade and one level higher than Moody’s Investors Service.

“The downgrade reflects intensifying pressure on Lebanon’s financing model, increasing risks to the government’s debt servicing capacity, Fitch said. “While recent policy steps point to nascent fiscal adjustment, a credible medium-term plan to stabilize government debt/GDP is lacking.”