Moody’s Investors Service, the international rating agency, downgraded on December 11, 2019 the standalone Baseline Credit Assessments (BCA) and the Adjusted BCAs of three Lebanese banks, namely Bank Audi, BLOM Bank, and Byblos Bank, from “caa2” to “ca”. Moody’s attributed such action to the issuance of BDL intermediate circular 536 on December 4, 2019 instructing banks to pay 50% of the interest on foreign currency deposits placed at banks prior to the circular’s issuance in foreign currency and the other 50% in the local currency, effective as of December 5 and for a period of six months, which in Moody’s opinion is a deposit default. As per the report, the ratings of “Caa3” on foreign currency deposits and “Caa2” on local currency deposits are maintained and are still on review for downgrade. In addition, the agency highlighted that the instructions of the Central Bank came along with unofficial restrictions declared by the Association of Banks in Lebanon on November 17 on capital transfers outside the country and on deposit withdrawals in U.S. dollars which are being applied by banks.