Association of Lebanese Banks Downplays Significance of S&P Downgrade for Three Banks
إقرأ هذا الخبر بالعربية
The Secretary General of the Association of Lebanese Banks, Makram Sader, stressed that the ratings agency Standard and Poor's decision to downgrade three Lebanese banks has no impact on the Lebanese banking sector.
“The rating isn't based on the banks strength or general performance but on the state's sovereign rating,” Sader said in comments published in An Nahar newspaper on Friday.
Sader lashed out at the politicians, holding them responsible for the deteriorating economy and financial situation in the country.
“We were rather hoping that the Lebanese banks would be rewarded on the efforts exerted by them to fortify the sector, instead they are being punished for the state's performance,” Sader said.
S&P said on Wednesday that it lowered to 'B-' from 'B' its long-term counterparty credit ratings on three Lebanese banks, Bank Audi SAL–Audi Saradar Group, BankMed s.a.l., and Blom Bank sal, following a similar rating action on Lebanon.
The outlooks on all three banks remain negative.
In a statement S&P said that it also lowered to 'C' from 'B' the short-term counterparty credit ratings on Bank Audi and BankMed.
The rating actions come in light of lowering of the ratings on Lebanon to 'B-' on November 1 over the “deteriorating fundamentals and rising political risks, adding that the outlook remains negative.
“The sovereign downgrade reflects our assessment that Lebanon's macroeconomic fundamentals have slowly but steadily declined since the Syrian crisis began in early 2011. After nearly three years of weak growth--exacerbated by an internal political environment not conducive to policymaking--public finances have deteriorated and the debt-to-GDP ratio is again trending upward,” the statement continued.
S&P explained that despite the three banks' “sound geographic diversification by regional standards... We believe that they are highly exposed to their domestic operating environment.”
08 November 2013, 09:12
910
In order to protect the lebanese pound, the monetary policy makers obliged the bank to buy T bills. But as Lebanon is on quasi-default since the failure of the reconstruction policy around 2000 due to Rafic Hariri at that time, and with a debt cumulation since that time, no wonder why the lebanese financial bank should collapse. It was just a matter of time and we are just observing now the first cracks in this castle made of air.
But still let us give Riad Salame, a new award ... huh ?
08 November 2013, 09:29
03
“The rating isn't based on the banks strength or general performance but on the state's sovereign rating,” Sader said in comments published in An Nahar newspaper on Friday.
Then why other Banks IE. Byblos were not downgraded???
08 November 2013, 09:30
126
what is still standing in this country is our banking system.
and now thanks to hizbushaitan, our banking system is being targeted.
when will this Iranian terrorist militia let Lebanon live again?
they want to destroy the country.
08 November 2013, 12:01
1011
he already knew, thanks to his crystal ball, that hezbollah would arise some day and that's what caused it.
08 November 2013, 16:25
00
To start with, Lebanon was not a real country. It was mainly made of families that ripped it off. Now, HA is continuing in destroying what's left of this country. The Lebanese people are more divided now than ever. They learned nothing from the 15 years civil war that killed more than 150 thousand people and similar number of handicapped. This Lebanon as it stands right now should not have been created. It should either have been Christian or Muslim Sunni or Muslim Shai. This mix of many fighting religions is futile. The banking sector though remains solid despite all this assessment. The rating will go up when this nut head Bashar dies or is toppled.
08 November 2013, 10:56
811
terrorist... party... appointed... economy... ruins... driving... women... they... Saudi Arabia?
08 November 2013, 12:41
128
hizbullah is a terrorist organisation, and hassan nasrallah is the key suspect in the downfall of the Lebanese state
08 November 2013, 18:41
115
habibi mukhtar:) yallah, give us some of your dissertations about the situation. I heard you were fired by the LF and this is the reason you are bitter. Mazboot? How are your new neighbors in dahiyeh. Have you decided to write a book about your civil war heroics or not yet? I enjoy your posts mukhtar:)
08 November 2013, 18:44
114
I heard you were upset with me and called me not very nice names? Khaleek kbeeeer mukhtar:)
08 November 2013, 20:25
103
Reserves of foreign exchange and gold: from 16 billion$ to 42billion in 2010...
GDP - real growth rate:from -6.4% in 2006 to +7.5% in 2010 and... fell to +1.5% under M8 gvt... LOL
public debt on the decrease since 2006 from 209 % of GDP to 150% in 2010...
exports: from 1.78 billion$ in 2006 to 5.2B $ in 2010
source :indexmundi
these figures for the M8ers who keep saying that M14 gvts did not rule efficiently the country...
