Sunday 24, September 2017 by William Mullally

Moody's: Outlook on Lebanon's banking system changed to stable on political stability and growth

The outlook expresses Moody's expectation of how bank creditworthiness will evolve in Lebanon over the next 12-18 months.

Moody’s has changed its outlook on Lebanon's banking system to stable from negative, reflecting greater political stability and an improvement in economic growth. The outlook expresses Moody's expectation of how bank creditworthiness will evolve in Lebanon over the next 12-18 months.

"After years of deterioration, the operating environment is stabilising," said Alexios Philippides, an Assistant Vice President at Moody's. "However, economic output will continue to be constrained by deteriorating basic infrastructure and businesses will defer investment decisions until there is further clarity on the political situation." Therefore, the rating agency expects modest credit growth of 6 per cent over the outlook period, similar to 2016, driven by the central bank's support packages.

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