S&P lowers views on three Lebanon banks to negative

S&P said it affirmed the B- long-term ratings on Bank Audi SAL, Blom Bank SAL and Bankmed SAL, along with the B short-term ratings on Bank Audi and Bankmed.

The agency also said it revised the outlooks on all three banks to negative from stable.

The outlook revisions follow the outlook revision on Lebanon, S&P said, due to the country's high fiscal deficits and its already large debt stock and debt-servicing costs, which are still rising.

But, S&P said it expects an improvement in investor confidence following the formation of a new government to support the government's financing needs in 2019.

Despite some geographic diversification, the agency said it considers Bank Audi, Blom Bank and Bankmed to be highly exposed to domestic operating conditions.

This primarily includes their exposure to the sovereign, S&P noted.

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