Economics

Lebanese Default Risk Prompts Moody's Downgrade Deeper Into Junk

  • Moody’s cuts Lebanon’s sovereign rating seven levels into junk
  • Qatar announced plans to buy Lebanese debt in show of support

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Photographer: Sima Diab/Bloomberg
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Lebanon wasn’t spared a debt rating downgrade that pushed it deeper into junk, hours after Qatar unveiled a plan to plow $500 million into its government bonds.

Moody’s Investors Service lowered the country’s credit score one step to Caa1Bloomberg Terminal, seven levels below investment grade and on par with countries including Gabon, Zambia and Iraq. It changed the outlook to stable from negative.