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

Lebanon becomes European Bank for Reconstruction and Development shareholder

Lebanon has become the fifth member country from the Southern and Eastern Mediterranean (SEMED) region to join the European Bank for Reconstruction and Development (EBRD), becoming a shareholder with ... more

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more

US lifts laptop ban on Turkish Airlines flights as of July 5

Passengers boarding an early morning July 5 Turkish Airlines (THY) flight to John F Kennedy International Airport in New York were allowed to include laptops and electronic devices larger than a ... more

Most Read

  1. Siemens considers quitting Russia
    9 days ago
  2. Wildfires hit Croatia and Montenegro’s Adriatic coast
    5 days ago
  3. Nato still has a mixed reception in Emerging Europe
    9 days ago
  4. Tajik president’s 23-year old daughter appointed deputy head of largest Tajik bank
    3 days ago
  5. COMMENT: Gazprom’s exit from Turkey is a sign of the times
    10 days ago
  1. CHINA RISING: When sleeping giants meet
    12 days ago
  2. Belarus’ retail king Euroopt goes on the road
    18 days ago
  3. STOLYPIN: Russia’s cyber-challenge cuts both ways
    20 days ago
  4. Moldova, Bulgaria, Poland, Albania and Latvia to lose more than 40% of their populations by 2100
    1 month ago
  5. Siemens considers quitting Russia
    9 days ago

Selected articles from our premium news/views wire IntelliNews Pro

Login to IntelliNews Pro
Get IntelliNews Pro

Reports

Dismiss