Goldman Says Lebanon May Cross Distress Threshold With Downgrade

Lebanon’s sovereign ranking will probably be cut deeper into junk by S&P Global Ratings within days, putting its bonds into a category considered vulnerable to nonpayment as the country struggles to claw back enough foreign currency, according to Goldman Sachs Group Inc, Bloomberg News reported. One of the world’s most indebted nations is on negative outlook at S&P, which is due to publish a review on Friday and currently rates Lebanon B-, six steps below investment grade and one notch higher than Moody’s Investors Service. “The steady deterioration in Lebanon’s FX liquidity position indicates a likely downgrade to CCC,” Goldman analysts including Farouk Soussa said in a note last week. Read more