Country Risk Rating

D
A high-risk political and economic situation and an often very difficult business environment can have a very significant impact on corporate payment behavior. Corporate default probability is very high. - Source: Coface
A1A2A3A4BCDEVery Low RiskAcceptable RiskVery High Risk

Business Climate Rating

D
The business environment is very difficult. Corporate financial information is rarely available and when available usually unreliable. The legal system makes debt collection very unpredictable. The institutional framework has very serious weaknesses. Intercompany transactions can thus be very difficult to manage in the highly risky environments rated D.
A1A2A3A4BCDEVery Low RiskAcceptable RiskVery High Risk

Strengths

  • Strategic geopolitical location, in the middle of three continents
  • Possibility to attract international aid in case of a commitment by the government on fiscal reforms
  • Offshore gas potential
  • Tourism potential

Weaknesses

  • After defaulting in March 2020, access to external funding remains problematic
  • Dependence on foreign funds to finance the external deficit
  • High-inflation environment, weak local currency
  • Loss of an important part of local infrastructure after the Beirut explosion in 2020
  • Persistent political uncertainty
  • Difficulty to restore tourism flows due to social tensions resulting from the economic crisis and low levels of vaccination

Current Trends

Source:

Coface (02/2022)
Lebanon