Despite domestic and external political shocks, and depressed economic conditions resulting from the ongoing civil war in neighboring Syria since 2011, Lebanon’s economy is proving resilient, ratings agency Standard and Poor’s (S&P) says. Deposit flows into the Lebanese banking system remain strong, and continue to facilitate the government’s debt servicing capacity.
But at the same time public finances are under pressure and the already-high government debt stock will continue to grow. Nevertheless S&P maintains a stable outlook on Lebanon and affirms its B-/B long- and short-term foreign and local currency sovereign credit ratings. The agency adds that in its view confidence in the Lebanese financial system remains strong and is unlikely to be significantly affected by domestic political developments, short of a major escalation of local unrest. (CONTINUED - 728 WORDS)