Jordan – Ratings Affirmed with a Stable Outlook

Rating Action

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has affirmed Jordan’s Long-Term Foreign Currency Rating (LT FCR) and LT Local Currency Rating (LT LCR) at ‘BB-’. At the same time, CI Ratings has affirmed the sovereign’s Short-Term (ST) FCR and ST LCR at ‘B’. The Outlook on the ratings remains Stable.

Rating Drivers

The ratings reflect the increase in the sovereign’s capacity to withstand external shocks as demonstrated by the resilience of the Jordanian economy and improving foreign reserve buffer, despite the challenging geopolitical landscape. These developments are underpinned by the government’s prudent macroeconomic policies, including ongoing fiscal consolidation efforts aimed at lowering general government debt over the medium term.

The ratings continue to be supported by low-to-moderate external debt, and a relatively sound banking sector. The ratings also take into consideration the availability of external…