Arab Today, arab today fitch ratings affirms lebanon outlook stable
Last Updated : GMT 01:22:22
Arab Today, arab today
Arab Today, arab today

Fitch Ratings affirms Lebanon outlook stable

Arab Today, arab today

Arab Today, arab today Fitch Ratings affirms Lebanon outlook stable

Beirut - Arabstoday

Fitch Ratings has affirmed Lebanon’s long-term foreign and local currency Issuer Default Ratings, short-term foreign currency IDR, and the Country Ceiling at “B.” The outlook is stable. The agency said that the affirmation of the rating reflects the fact that Lebanon’s substantial and rising foreign exchange reserves, lower debt levels, and reduced interest costs – relative to the previous decade – mitigate the downside risks to political stability, growth and public finances in 2012. “The already low rating embodies a degree of tolerance for political volatility. However, a major and sustained outbreak of conflict resulting from either internal sectarian strife or a spillover of tensions from neighboring Syria could put the rating under negative pressure,” Fitch added. It stressed that the risk of sustained deposit flight prompted by political instability is the primary risk to Lebanon’s rating. “Currently, there are no signs of this, and when deposits have fallen in the past, the fall has proved temporary. Sporadic violence over the past year has not become generalized or widespread, due to the lack of appetite for violence among the majority of the population and efforts by leaders of Lebanon’s sectarian groups to prevent it,” Fitch said. Nevertheless, it said that the developments in Syria have the potential to inflame tensions. Although Fitch’s base case does not envisage the outbreak of sustained violence, such an outcome, if it were to happen, would adversely affect the rating. Fitch explained that the economic impact of increased political tensions has so far mainly been felt in lower growth, whilst key financial variables – FX reserves and banking system deposits – continue to rise, and the public debt ratio declined again in 2011 to 135 percent of gross domestic product. Latest official estimates suggest GDP rose by a faster than expected 5 percent in 2011, despite a slowdown in tourism and the property market – two key sectors of the economy. Importantly, non-resident deposit growth picked up during the year as a new government was installed in June and interest differentials remained attractive. “For the year as a whole, non-resident deposit growth was 15 percent – a rate that was maintained in the year to April. Total banking system deposits grew 8 percent in the year to April 2012. Although credit growth has slowed, it remains a robust 13 percent to 14 percent,” Fitch said. Growth is expected to slow further this year. Tourist arrivals are down 8 percent so far in 2012 and the summer season will be adversely affected by travel advisories announced by a number of Gulf Cooperation Council countries. Activity in the property sector has stagnated. Debt dynamics are therefore set to weaken. From DailyStar

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today fitch ratings affirms lebanon outlook stable Arab Today, arab today fitch ratings affirms lebanon outlook stable

 



Arab Today, arab today
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Top Yemen commander killed

GMT 09:55 2017 Wednesday ,22 February

Top Yemen commander killed
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success

GMT 05:26 2017 Wednesday ,22 February

Singapore carbon tax would hit refiners, help renewables

GMT 05:18 2017 Wednesday ,22 February

Chinese PM: US should avoid ‘trade war,’

GMT 20:59 2017 Tuesday ,21 February

Economy good, but homes in German cities overpriced

GMT 05:29 2017 Tuesday ,21 February

Sovereign funds pulled $38bn from markets in 2016

GMT 05:15 2017 Tuesday ,21 February

Gold firms as markets await Trump tax plans

GMT 04:58 2017 Tuesday ,21 February

EU, IMF in ‘common position’ on Greece crisis
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today 63-Year-Old Woman Delivers Baby

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Janat pleased for issuing 'Good Morning'

GMT 06:41 2017 Monday ,20 February

Janat pleased for issuing 'Good Morning'
Arab Today, arab today Small ponds have outsized impact

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 06:34 2017 Sunday ,19 February

Ahmed Fahmy stresses he did not ignore singing

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection

GMT 14:06 2017 Friday ,17 February

London to tax old cars

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 05:15 2017 Tuesday ,21 February

Omega 3 can reduce asthma cases

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday