Bahrain’s Sovereign Ratings Affirmed

Ref : BH 20 CRA00- 0 2 9 October 2020

Bahrain’s Sovereign Ratings Affirmed

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 ‘BB – ’. 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 for all ratings remains Negative.

Rating Rationale

The ratings and Outlook reflect the country’s declining levels of already modest foreign exchange reserves, alongside the continued drawdown o f the sovereign’s stock of other external assets to cover its financing needs. The ratings also reflect the economic fallout from Covid-19 and lower hydrocarbon prices, which have contributed to weakening fiscal and external balances and increasing debt levels. …