S&P Global Ratings affirmed Lebanon's long- and short-term foreign and local currency sovereign credit ratings at 'B-/B', and maintained its 'stable' outlook on the ratings. It indicated that the 'stable' outlook reflects its expectations that deposit inflows to the financial system will remain sufficient to support the government's borrowing requirements and the country's external deficit over the next 12 months.

The agency pointed out that the government's debt-servicing capacity depends on the financial sector's willingness and ability to continue to subscribe to government securities. In turn, it noted that this depends mainly on non-resident deposit inflows and on financing from Banque du Liban. It considered that the government's reliance on the banking sector's willingness and ability to finance its needs, along with the divisive domestic political environment and regional tensions, constitute structural weaknesses that have constrained the ratings.

S&P considered that the ratings are supported by Lebanon's external profile, as the country's liquid external assets, which consist of foreign currency reserves and the assets of the financial sector held abroad, exceed its external debt. It expected Lebanon's liquid external assets to continue to exceed its external debt through 2021, but it noted that external financing needs are elevated. It anticipated non-resident deposit inflows, largely from the Lebanese Diaspora, to continue to support Lebanon's large fiscal and current account deficits, but to increase the country's external debt level. However, it considered that political uncertainty that would result from delays in the formation of a new government, along with high geopolitical risks, could weigh on investment and deposit growth.

S&P  indicated that it could upgrade Lebanon's sovereign ratings in case the country's policy-making framework becomes more predictable and effective, which would raise Lebanon's growth path above the current trajectory, improve fiscal and external imbalances and put public finances on a more sustainable path.

Figures released by Banque du Liban show that the number of payment cards issued in Lebanon reached 2,686,275 cards at the end of June 2018, constituting an increase of 2% from end-2017 and of 5% from the end of June 2017. Cards held by residents accounted for 96.6% of total cards issued in Lebanon at end-June 2018. The distribution of payment cards by type shows that debit cards with residents reached 1,521,669 and accounted for 56.6% of the total, followed by credit cards with residents at 553,901 (20.6%), prepaid cards with residents at 428,106 (15.9%), charge cards with residents at 91,151 (3.4%), debit cards held by non-residents at 61,504 (2.3%), credit cards with non-residents at 21,208 (0.8%), charge cards held by non-residents at 7,283 (0.3%) and prepaid cards with non-residents at 1,453 (0.1%). 

Further, the aggregate number of points-of-sales accepting payment cards reached 43,810 at the end of June 2018, constituting an increase of 3.1% from end-2017 and a rise of 8.8% year-on-year. As a result, there were 4.2 points-of-sales per square kilometer in Lebanon at the end of June 2018.

Figures released by the Insurance Control Commission (ICC) show that the aggregate net profits of 31 companies operating in the life insurance category in Lebanon reached $109.9m in 2017, constituting an increase of 33.3% from $82.4m in 2016. Also, net income from the life category posted a compound annual growth rate (CAGR) of 9.3% between 2011 and 2017. The ''term life protection'' segment posted profits of $79.1m in 2017, followed by the ''life protection with savings'' segment with $28m and the ''life protection with unit-linked savings'' segment with $2.7m. Metlife Alico led all life insurers with $27.8m in net profits in 2017 and accounted for 25.3% of the life category's aggregate net earnings, followed by Bancassurance with $19.5m (17.8%), Sogecap with $15.2m (13.9%), ADIR with $10.6m (9.6%), CLA with $10.3m (9.4%) and Allianz SNA with $5.6m (5.1%).

Gross written premiums from the life category, which include new business and renewals, increased by 3.1% to $497.6m in 2017 relative to growth rates of 5.1% in 2016, 7.8% in 2015, 4.3% in 2014 and 7.5% in 2013. Also, gross premiums rose by a CAGR of 5.3% between 2011 and 2017. Gross written premiums from the ''life protection with savings'' segment totaled $186.6m and accounted for 37.5% of aggregate life insurance premiums, followed by the ''term life protection'' segment with $168.9m (33.9%), and the ''life protection with unit-linked savings'' segment with $142.2m (28.6%). Further, net premiums stood at $471.7m, policy fees totaled $19.1m, and the cost of policies reached $13m in 2017.