Bahrain – Sovereign Ratings Affirmed with a Stable Outlook
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Summary
Ref : BH2 3 CRA00-0 1 12 May 2023
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 Long-Term Local Currency Rating (LT LCR) at ‘B+’ . At the same time, CI Ratings has affirmed the sovereign’s Short -Term Foreign Currency Rating (ST FCR) and Short-Term Local Currency Rating (ST LCR) at ‘B’. The Outlook remains Stable.
Rating Rationale
The ratings reflect the improvement in the public finances and external balances in 2022, supported by high hydrocarbon prices. The ratings continue to be supported by ongoing financial assistance from Saudi Arabia, Kuwait and the UAE. GCC support serves as both a direct source of fiscal financing and as a key element in the preservation of investor confidence and capital market access. Bahrain’s ratings …