Fitch Affirms Jordan’s Long-Term Foreign Currency Issuer Default Rating at BB-, with a Negative Outlook

Jordan’s Long-Term Foreign Currency Issuer Default Rating (IDR) has been affirmed at BB- by Fitch Ratings (Fitch), with a Negative Outlook.

The ratings are supported by fiscal and economic reforms, as well as the availability of domestic and external financing linked to the liquid banking sector, public pension funds and funding from Jordan’s external partners. Meanwhile, Fitch reported that the ratings are constrained by high government debt, large external financing needs, weak growth as well as domestic and regional political risks.

Jordan’s Negative Outlook reflects the impact of the COVID-19 pandemic, which has led to significant increases in the budget defici...