Tuesday 17, March 2009 by
Lebanon’s government retains a good ability to finance itself, says Moody’s
Moody's said that the government of Lebanon's recent voluntary debt exchange is supportive of its B3 ratings. Last week, the government of Lebanon exchanged 83 per cent of its foreign currency bonds maturing over the remainder of 2009 (which had a total face value of $2.3 billion) for longer-dated foreign currency bonds set to mature in 2012 and 2017. The yields of the new bonds range between 7.5 per cent and nine per cent, representing a spread over equivalent swap rates of between 547 and 612 basis points. (The exchange is not classified as a "distressed exchange" according to Moody's definition because it was conducted on a voluntary basis.)
