These ratings are B3 local and foreign currency government bond ratings, the B3 country ceiling for foreign currency bank deposits, and the B2 country ceiling for foreign currency bonds.

"The change in outlook was motivated by the proven resilience of the public finances to shocks, which have been severe in recent years," said Moody's Sovereigns Group vice-president and senior analyst Tristan Cooper.

"Moody's recognises that Lebanon's calmer political environment has allowed the country's economy to regain momentum but also notes that the public finances would likely be durable should the improvement falter," he said.

"This summer was Lebanon's best in terms of tourism inflows since 2004.

"Furthermore, Moody's notes that Lebanon is one of the few countries to have so far benefited from the global financial turmoil, as members of the large Lebanese diaspora have moved funds into Lebanon's banks, viewing them as relatively safe havens."