Bahrain’s Sovereign Ratings Downgraded; Outlook Revised to Stable

Bahrain’s Sovereign Ratings Downgraded; Outlook Revised to Stable

Rating Action

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has lowered Bahrain’s Long-Term Foreign Currency Rating (LT FCR) and Long-Term Local Currency Rating (LT LCR) to ‘B+’ from ‘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 has been revised to Stable from Negative .

Rating Rationale

The ratings downgrade reflect s the persistent weakness es in the public finances, including high budget deficit s and rising debt levels , which have in turn contributed to a heavy interest burden and large financing needs . The ratings also take into account Bahrain’s external vulnerabilities, with large external financing requirements and modest foreign reserves . …