Although operating conditions will remain challenging and notwithstanding Moody’s downgrade of Lebanon’s government bond rating, the rating agency expects the operating environment for banks to stabilise after years of deterioration on the back of renewed political stability driving a modest pickup in economic growth, albeit from low levels. The rating agency forecasts real GDP growth to pick up slightly to 2.8% in 2017 and 3.0% in 2018, from 1.8% in 2016 but below the 9% average for 2007-10.
Moody’s, therefore, continues to view the operating environment for banks (Macro Profile) in Lebanon as “Weak”. This reflects a very large public debt overhang, wide fiscal and current account deficits, and regional political instability. These factors are balanced against a resilient bank deposit base supporting government funding needs and
BLOM Bank’s standalone and long-term deposit ratings reflect the bank’s strong domestic market position (ranked as the second-largest bank in Lebanon in terms of assets), as well as its resilient bottom-line profitability, adequate