Today, Fitch Global Credit Rating Agency downgraded Bahrain’s long-term foreign currency credit rating to ‘B’ from ‘B+’. The agency pointed to high public debt, large fiscal deficits and declining foreign exchange reserves.
“This downgrade reflects the authorities’ expectation that government debt as a percentage of gross domestic product (GDP) will continue to rise despite the implementation of fiscal consolidation measures,” Fitch said in a statement.
The agency maintained Saudi Arabia’s outlook at a “stable” level.
financial reform
Late last year, Bahrain announced fiscal reforms to strengthen its finances, including raising fuel prices and collecting electricity and water charges.
A similar agency, Standard & Poor’s, also downgraded Saudi Arabia’s sovereign credit rating to ‘B’ in late November last year.
Global credit rating agency Fitch today downgraded Bahrain’s long-term foreign currency credit rating from ‘B+’ to ‘B’. The agency pointed to an increase in public debt, a large fiscal deficit and a decline in foreign exchange reserves.
“This downgrade reflects the agency’s expectation that the extremely high government debt-to-GDP ratio will continue to rise despite the implementation of fiscal consolidation measures,” Fitch said in a release.
The agency kept the outlook for Saudi Arabia unchanged at “stable.”
financial reform
Late last year, Bahrain announced fiscal reforms aimed at strengthening its finances, including raising fuel prices and imposing electricity and water charges.
Similarly, government agency Standard & Poor’s downgraded Saudi Arabia’s sovereign credit rating to ‘B’ in late November last year.
