S&P cuts Lebanon debt rating

Credit ratings agency S&P lowered Lebanon's debt grade a notch on Friday, but warned a further cut is possible should the government miss a payment to creditors. S&P Global Ratings lowered the sovereign credit rating to CC from CCC with a negative outlook, the agency said in a statement. Lebanon's debt burden had been among the largest in the world for some time but a liquidity crunch has brought the crisis home and banks have imposed tough restrictions on dollar withdrawals.

The government in Beirut faces a $1.2 billion debt payment on Eurobonds that reach maturity on March 9. "We are lowering our ratings because we believe restructuring or nonpayment of Lebanon's government debt is virtually certain, regardless of the specific time to default," S&P said in a statement, citing "severe fiscal, external, and political pressures."