Lebanon Downgraded by Moody’s Amid Bond Meltdown

Lebanon’s credit rating was cut one notch further into junk territory by Moody’s Investors Service on Tuesday as protests roil the nation, reflecting the increased likelihood of debt rescheduling or other steps that may constitute a default, Bloomberg News reported. Moody’s analyst Elisa Parisi-Capone said the viability of the currency’s peg to the U.S. dollar and macroeconomic stability are both threatened by social protests and a loss of investor confidence. Moody’s downgraded Lebanon’s long-term foreign to Caa2 and said the rating remains on watch negative, meaning more cuts may be in store. Lebanon’s debt returned a negative 18% so far this year, a collapse exceeded only by Venezuela and Argentina. Lebanese bonds maturing in 2027 extended the day’s loss to 4.8% after the decision, the worst performance among emerging-market sovereign bonds. Read more