Fitch affirms Bahrain’s BBB/BBB+ ratings, outlook stable

By bne IntelliNews January 13, 2014

Fitch affirmed Bahrain’s long-term foreign and local currency Issuer Default Rating (IDR) at BBB and BBB+, respectively, with a stable outlook based on robust economic growth forecast and a stagnant political scene.

With an estimated current account surplus of around 10% of GDP for 2013, Bahrain maintains a very strong external position, which following 10 years of surpluses, translated to an overall net creditor position amounting to 100% of GDP at end of 2012, according to calculations made by Fitch. It estimates that real GDP growth will rise to 4.9% in 2013 up from 3.4% in 2012 following the resumption of oil production at the main Abu Saafa field. Economic growth is expected to be maintained at the same pace driven by steady oil output and the disbursement of GCC project funds propelling the growth of the non-oil sector.

The rating agency expects the political stalemate between the minority Sunni-led government and the majority Shiite dominated opposition to continue with low level violence on-going. With parliamentary elections scheduled for October 2014 there could be chances of additional flare-ups of violence.

Fitch also reaffirmed BBB and BBB+ rating on Bahrain's senior unsecured foreign and local currency bonds, respectively. While retaining Bahrain's Country Ceiling at BBB+ and short-term foreign currency IDR at F3.

Read in IntelliNews Pro

Get IntelliNews Pro

Related Articles

Egypt signs oil and gas exploration deals with Dragon Oil, Perenco and Apache worth over $121mn

Egypt’s Ministry of Petroleum and Mineral Resources signed three agreements on September 14 – with UAE-based Dragon Oil, and French independent Perenco Egypt and its US peer Apache Egypt ... more

Egypt eyes $5.2bn in manufacturing investments for FY2025/26, says planning minister

The Egyptian government plans to attract EGP 252.8bn ($5.2bn) in investments to the manufacturing sector for FY 2025/26, Economy Plus reported on September 3, citing the country’s Minister of ... more

Egypt set to receive $500mn tranche from IMF Resilience and Sustainability Facility before end-2025

Egypt is set to receive the first tranche of $500mn from the International Monetary Fund’s (IMF) Resilience and Sustainability Facility (RSF) before the end of 2025, Asharq Business reported on ... more

Dismiss

Chat with usLiveChat