Moody’s Investors Service, the international rating agency, published on January 9, 2025 an issuer comment on Lebanon in light of the election of former army chief Mr. Joseph Aoun as a new president of the Republic of Lebanon, after a  vacuum that started at end of October 2022. The rating agency commented that this election will pave the way to the formation of a new government with full authorities, bearing in mind that the previous one was in a caretaker capacity, while also adding that the elected president has the support of the international donor community. Moody’s revealed that the country’s return to fully functioning state institutions would aid in the continued enforcement of the ceasefire agreement that was inked on November 26, and is essential to unlocking international financing, as the recent war has inflicted heavy damages on the Lebanese economy with losses estimated at $8.5 billion, including some $3.4 billion in physical damages. In this regard, the agency expected the economy to have contracted by around 10% in 2024, yet anticipated economic activity to pick up in 2025 assuming the ceasefire holds. Moody’s reminded that the disbursement of international donor funds remains tied to implementation of a set of reforms such as agreeing on a comprehensive debt restructuring as a prerequisite for sustained economic recovery, while adding that Lebanon's current “C” rating reflects the agency’s expectation that holders of Lebanese Eurobonds will recover less than 35% of their value following the restructuring exercise. Moody’s revealed that the curbing of the fiscal and investment spending was key to achieving exchange rate and price stability, yet are detrimental to the country’s long-term growth potential. Finally, the rating agency commented that achieving debt sustainability is only possible via a substantial reduction in the government’s debt to GDP ratio (estimated at 150% at end of 2024).