A report by Moody's showed that Lebanon's credit situation reflects its very high debt burden, saying that raising Lebanon's credit rating should be accompanied by a stable financial reform followed by a long-term sustainable debt change, while the agency will reduce its rating if the decline in deposit flows continues which indicates an increased risk of a balance of payments crisis.
According to Moody's, the low level of economic resilience of Lebanon reflects modest per capita income levels, narrow growth prospects and vulnerability to external shocks. Revealing that the trend of Lebanese growth was strongly affected by the deterioration of the economic and political environment in the region.
Moody's predicted that Lebanon's economy would grow by 2.5% in 2018 and 3% in 2019 after growth of about 1.9% in 2017. Showing that the stable outlook takes into account Lebanon's large foreign reserves, which proved its ability to withstand political turmoil during the last years.