Moody’s Investors Service, the international rating agency, published on December 13, 2023 a rating action on the Government of Lebanon, maintaining the country’s rating at “C”, while changing the outlook from “No Outlook” to “Stable”. The “C” rating reflects that losses for bondholders are likely to exceed 65%, while the “Stable” outlook indicates that the rating is here to stay for some time given the unstable political environment, political stalemate and feeble institutions, as well as the country’s exposure to the nearby conflict in Gaza (which upended tourism and economic activity). In details, Moody’s commented that Lebanon remains stuck in an intertwined economic, financial and social crisis that the country’s weak institutions seem incapable to address, whilst noting that external support hinges on enacting a set of reforms. In figures, Moody’s uncovered the Lebanon’s pre-crisis debt to GDP ratio of 170% has worsened (external debt to GDP ratio of 319.6% in 2022) given the sharp economic contraction (real GDP dropping by 2.6% in 2022), and that annual inflation stood at 215.4% at end of October 2023 and at 122% at end of year 2022. Concurrently, GDP per capita levelled at $13,188 in 2022 while the fiscal balance and current account balance stood at 1% and -26.7% of GDP in 2022 on a respective basis. On the weak institutions front, the rating agency also lamented the list of voids Lebanon is experiencing, starting with the presidential one (since end of October 2022), couple with the caretaker form of the government, and the appointment of the previously first deputy governor Dr. Wassim Mansouri as acting governor of the Central Bank since end of July 2023. Finally, Moody’s stated that “C” is the lowest rating on its scale and that it may consider a rating upgrade in the event fiscal consolidation and structural reform implementation are undertaken at a much faster pace than current levels and over a number of years on the one hand, and a sizeable improvement in the country’s key debt dynamics (such as economic growth, interest rates, privatization revenues, and capacity to register large primary surpluses) on the other so as to guarantee debt sustainability in the future. The rating agency, however, does not foresee any upgrade over the near future.