Bahrain – Sovereign Ratings Affirmed with a Stable Outlook

Ref : BH2 4 CRA00-0 2 1 1 October 2024

Bahrain – Sovereign Ratings Affirmed with a Stable Outlook

Rating Action

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has affirmed Bahrain’s Long-Term Foreign Currency Rating (LT FCR) and L T Local Currency Rating (LT LCR) at ‘B+’ . At the same time, CI Ratings has affirmed the sovereign’s Short -Term FCR (ST FCR) and ST LCR at ‘B’. The Outlook remains Stable.

Rating Rationale

Bahrain’s ratings reflect continued primary budget and current account surpluses, supported by relatively high hydrocarbon prices and the implementation of moderate fiscal consolidation measures that aim to rationalise public expenditure and increase non-hydrocarbon revenues . The ratings also take into account the likelihood of financial support from Saudi Arabia and the GCC in case of need , as well as the country’s high GDP per capita and…