Majority holders of the Middle East's lowest-rated bonds, may be at risk should Syria's popular uprising hurt Lebanon's political stability and economic growth. "The main risk for the banking sector is that rich Lebanese expatriates who deposit their cash in Lebanese banks would withdraw their money because of a deterioration in the nation's politics," Rami Sidani, the Dubai-based head of Middle East and North Africa investment at Schroder Investment Management Ltd., said Thursday. The cost of protecting against Lebanon defaulting on its debt is the highest in the Middle East. Five-year credit-default swaps gained four basis points to 354 this week, according to data compiled by CMA, which is owned by CME Group Inc. and compiles prices quoted by dealers in the privately negotiated market. The contracts pay the buyer face value in exchange for the underlying securities or the cash equivalent if a government or company fails to adhere to debt agreements. Lebanese banks hold about 70 percent of the nation's debt which is rated B1 by Moody's Investors Service, four notches below investment grade, and B by Standard and Poor's, the fifth
