Fitch Affirms Bahrain’s Long-Term Foreign Currency Issuer Default Rating at B+, with a Stable Outlook

Bahrain’s Long-Term Foreign Currency Issuer Default Rating (IDR) has been affirmed at B+ by Fitch Ratings (Fitch), with a Stable Outlook.

Ratings Rationale

Bahrain’s ratings are backed by robust financial support from partners in the Gulf Cooperation Council (GCC), high gross domestic product (GDP) per capita and human development indicators, as well as strong macroeconomic performance.

However, the ratings are constrained by weak public finances, low reserves of foreign exchange, high dependence on oil revenue and political restrictions, despite increased policy focus on fiscal consolidation since 2018.

Factors Leading to Positive Rating/Upgrade

A narrowing budget deficit and downward path of g...