Lebanon's Dollar Bonds Fall On Risk of Credit Rating Downgrade by S&P Global

Dollar-denominated bonds issued by Lebanon’s government dropped to new lows on Tuesday on worries about the risk of a sovereign credit rating downgrade by S&P Global, Reuters reported. The 2027 issue slumped by 2 cents in the dollar to trade at its lowest level, while the 2026 issue shed 2.4 cents to also reach a new low, according to Tradeweb data. “There’s an upcoming rating review by S&P and people are focusing on the possibility of a downgrade,” said Giyas Gokkent, of JPMorgan Securities. “S&P has a negative outlook on Lebanon’s long term sovereign ratings and the central bank governor has said a downgrade could impact banks’ capital adequacy levels.” S&P is due to publish its review of Lebanon on Friday. Read more