Bahrain – Sovereign Ratings Affirmed with a Stable Outlook
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Summary
Ref : BH2 2 CRA00-0 2 11 November 2022
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 take into account the easing of budgetary pressures linked to high hydrocarbon prices, but continue to be constrained by the very high level of government debt, limited fiscal flexibility, and the sovereign’s vulnerability to volatility in hydrocarbon prices. The ratings also reflect Bahrain’s external vulnerabilities, with sizeable external financing requirements and modest – albeit improving…