Jordan’s Sovereign Ratings Lowered; Outlook Revised to Stable

Ref: JO19CRA00-1 3 1 st May 201 9

Jordan’s Sovereign Ratings Lowered; Outlook Revised to Stable

RATING ACTION

Capital Intelligence Ratings (CI Ratings or CI ) , the international credit rating agency, today announced that it has lowered the Long-Term Foreign Currency Rating (LT FC R ) of Jordan to ‘B+’ from ‘BB-’ and its Long-Term Local Currency Rating (LT LC R ) to ‘B+’ from ‘BB’. At the same time, CI Ratings has affirmed Jordan’s Short-Term Foreign Currency Rating (ST FC R ) and Short-Term Local Currency Rating (ST LC R ) at ‘B’ . The Outlook for all ratings has been revised to Stable from Negative.

RATING RATIONALE

The ratings downgrade reflects the limited progress made in addressing fiscal and economic vulnerabilities over the past two years – admittedly against a difficult external backdrop and as evidenced by substantial budgetary s lippage in 2018 – and CI’s concern that reform momentum will remain…