Lebanon's finance minister says that the Moody's Investors Service report that downgraded the country's status shows the urgency of forming a new Cabinet and implementing economic reforms.
Ali Hassan Khalil's comments Friday came a day after Moody's changed Lebanon's government issuer ratings outlook from stable to negative and assigned it the rating of B3.
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Lebanon's economy has been under pressure for years from the war in neighboring Syria, a debt of $85 billion equal to 150 percent of its GDP and little growth.
Prime Minister-designate Saad Hariri has not been able to form a Cabinet since May's parliamentary elections because of political disagreements.
"The B3 rating reflects Moody's assumption that a government will be formed in the near term and will implement some fiscal consolidation," said Moody's report.