Bahrain – Sovereign Ratings Affirmed with a Stable Outlook
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Summary
Ref : BH2 4 CRA00-0 1 12 April 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 still high hydrocarbon prices and the implementation of moderate fiscal consolidation measures that aim to rationalise public expenditure . The ratings continue to be supported by ongoing financial assistance from Saudi Arabia, Kuwait , and the UAE. GCC support serves both as a direct source of fiscal financing and as a key element in the preservation of…