Moody's Warns It May Downgrade Lebanon Rating within 3 Months

The Finance Ministry said Tuesday that rating agency Moody's has warned it could lower Lebanon's sovereign credit rating within three months if the country does not redress its economy.

Moody's already downgraded the rating from "B3" to "Caa1" at the start of the year, citing debt risks, while fellow agency Fitch followed suit in August.

Lebanon's public debt stands at around $86 billion -- more than 150 percent of gross domestic product (GDP) -- according to the finance ministry.

Eighty percent of that debt is owed to Lebanon's central bank and local banks.

In July, parliament passed an austerity budget as part of conditions to unlock $11 billion in aid pledged at a conference in Paris last year.