Tuesday, May 20, 2008

Lebanon: Economy on the Edge

"Though the current rating of "B3" is the lowest rating possible for governments that are not in default, or at imminent risk of default, a Moody's official said Lebanon had shown an ability to overcome many difficulties.
"Given that the government of Lebanon is not in default, Moody's believes that the country's low ratings already encapsulate the risk of severe political turmoil," said Tristan Cooper, vice-president of Moody's Sovereign Risk Unit."

"So far, donor countries such as Saudi Arabia and the US have remained committed to maintaining their political and financial support for the Siniora government. However, this backing may come to the test if Hezbollah returns to the government, one of the conditions it is seeking to end its campaign of unrest."

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