S&P lowers ratings on three Lebanese banks to 'selective default'

PHOTO

S&P Global Ratings has lowered its long-term issuer credit ratings on Bank Audi, Blom Bank and Bankmed to 'SD” (Selective Default) and removed them from CreditWatch with negative implications.

The rating actions come after a new circular from the Lebanese central bank requesting banks to pay, in Lebanese pounds, half of the interest due on customers' U.S. dollar-denominated term deposits existing and not matured before Dec. 5.

“In our view, this latest move, following a number of recent measures, further limits depositors' access to their funds,” S&P Global said in a statement.

Recent measures by the Lebanese central bank and the Association of Banks in Lebanon include limits on U.S. dollar-deposit withdrawals and cash conversion from Lebanese pound to the dollar at the official rate, as well as restrictions of transfers of money abroad.

In November, S&P downgraded the ratings of Bank Audi, Blom Bank and Bankmed to CCC from B-, maintaining a negative outlook on the banks.

(Writing by Nada Al Rifai nada.rifai@refinitiv.com , editing by Seban Scaria)

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.