LEBANON - Standard & Poor's has raised Lebanon’s long-term sovereign credit rating in local currency to “CCC+” from “CCC”, while keeping the short-term rating at “C” with a stable outlook.

However, the agency kept Lebanon’s foreign-currency rating at “SD/SD” (selective default), meaning the country remains in default on its foreign debt.

S&P said the upgrade reflects an improved ability by the government to meet its obligations in local currency.

This improvement is supported by three consecutive years of fiscal surpluses, as well as progress in financial and banking reforms aimed at reaching a possible funding agreement with the International Monetary Fund.

The agency noted that the government has started implementing key reforms in the banking sector and public finances.

Still, it warned that progress may slow due to internal political challenges and the upcoming parliamentary elections scheduled for May 2026.

Despite limited financial resources, the government has continued paying its commercial dues in local currency.

In 2025, it also paid all outstanding interest owed to the Banque du Liban, showing improved discipline in managing domestic debt.