Moody”s: Formation of Effective Cabinet is Major Challenge
Credit ratings agency Moody”s Investors Service has said the "peaceful" Lebanese parliamentary elections held on June 7 provided reassurances although many challenges remain.
Moody”s said in a report that despite the March 14 alliance”s victory in the elections, the major challenge is the ability to form an "effective" new government "that will push forward the fiscal and economic reforms that Lebanon needs."
"Yet, the improvement in both the domestic and regional political tone over the past year does provide hope that cooperation on matters of national interest can be achieved," Moody”s said.
It added that President Michel Suleiman can play an important role in this regard.
The report reminded that the agency upgraded Lebanon”s sovereign ratings to B2 in April because of the substantial improvement in external liquidity, the proven resistance of the public finances to shocks, and the willingness and ability of the country”s resilient banking system to finance fiscal deficits.
Moody”s Investors Service, a leading global credit rating, research and risk analysis firm, publishes credit opinions, research, and ratings on fixed-income securities, issuers of securities and other credit obligations.