Sovereign risk overshadows Lebanon's banking sector outlook

Gulf News

Dubai: Lebanese banks' high and growing exposure to Lebanese sovereign debt and the uncertainty over sovereign credit strength will remain a major source of credit risk according to rating agencies and analysts.
Credit rating agency Moody's has recently assigned negative B1 rating for the banking system with a negative outlook while the sovereign is rates at
B1 negative. In November last year, Standard & Poor's (S & P) had assigned negative outlook for the banking sector linked to a downgrade of Lebanon's sovereign rating to B minus (B-) in November 2013.
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