Bahrain’s Sovereign Ratings Affirmed with a Stable Outlook
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Summary
Ref : BH2 2 CRA00-0 1 6 May 2022
Bahrain’s 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 for all ratings has been affirmed at Stable.
Rating Rationale
The ratings take into account the easing of budgetary pressures linked to the latest surg e in hydrocarbon prices, but remain fundamentally constrained by the high level of government debt, limited fiscal flexibility, and the sovereign’s vulnerability to low oil prices. The ratings also reflect Bahrain’s external vulnerabilities, with large external financing requirements and…