Lebanon on Debt Tightrope as S&P Sets Clock Ticking to Downgrade - Bloomberg

Lebanon on Debt Tightrope as S&P Sets Clock Ticking to Downgrade - Bloomberg:

Lebanon bought itself some time with the market and won a reprieve from a downgrade deeper into junk by S&P Global Ratings.

The relief may not last. While some investors are turning more confident that Lebanon will maintain its unblemished record of paying creditors, S&P on Wednesday highlighted vulnerabilities that could still put one of the world’s most indebted countries to a test.

After originally giving Lebanon up to a year to stabilize its finances, S&P said that a continued decline in bank deposits -- a key source of the government’s funding -- could trigger a downgrade to the CCC category already during the next six months.