Fitch Ratings, the international rating agency, commented on October 14, 2022 on the recently brokered maritime agreement between Lebanon and Israel. In details, the agency stated that the agreement paves the way for Lebanon to tap its hydrocarbon reserves, and accordingly when coupled with a reform process could improve Lebanon’s credit profile on the long-term yet warned that the outcomes are uncertain and associated with a significant implementation risk. Fitch revealed that while the details of the agreement are yet to be published, officials’ statements indicate that Lebanon would get full exploration and production rights for the Qana field, while Israel would be financially remunerated for its stake by the field’s operator. It is worth noting, in this regard, that the TotalEnergies consortium holds an exploration license for Block 9, where the bulk of Qana field lies. In this vein, Fitch Ratings revealed that Lebanon’s caretaker prime minister requested TotalEnergies to initiate gas exploration immediately. On the implementation risk front, Fitch commented that the size of reserves in the Qana field is still unknown, bearing in mind that drilling in Block 4 did not reveal commercially viable volumes, and that the development of a transparent legal framework for production could be derailed by Lebanon’s political environment. Fitch Ratings reaffirmed Lebanon’s long-term foreign currency Issuer Default Rating (IDR) at “RD” (Restricted Default) and the long-term local currency IDR at “CC”. The rating agency reminded that the IMF is yet to approve the disbursement of the $3 billion facility as it is tied to reforms that are unfulfilled so far, while also adding that the inconclusive results of the parliamentary elections and a looming presidential void could further delay reform implementation.