Jun 13 2012
|more articles from|
PRESS RELEASE: Fitch Assigns Upcoming Bahrain USD Bond 'BBB'(exp) Rating
Wednesday, Jun 13, 2012
The following is a press release from Fitch Ratings:
Fitch Ratings-London-13 June 2012: Fitch Ratings has assigned the Kingdom of Bahrain's forthcoming US dollar bond a 'BBB'(exp) rating.
The expected rating is in line with Bahrain's foreign currency Issuer Default Rating (IDR) of 'BBB'/Stable. The rating was affirmed on 3 August 2011.
The weaker macroeconomic backdrop and increased social spending increased pressure on public finances, with public debt to GDP rising to 36.4% in 2011, from around 16.4% in 2008, but in line with the 'BBB' median of around 39% for the same period. Forthcoming support from Saudi Arabia and other Gulf Co-Operation Council (GCC) countries is expected to offset further rises in social spending, helping to support Bahrain's credit rating.
Fitch has previously stated that a worsening in the security situation and protracted delays in the political reform process would result in renewed downward pressure on the rating. By contrast, genuine political reform would lead to a sustainable improvement in Bahrain's political environment, with positive consequences for the fiscal and economic outlook and the rating.
- Maria Malas-Mroueh
- +44 (0) 20 3530 1081
- Fitch Ratings Limited
- 30 North Colonnade
- London E14 5GN
- Charles Seville
- +44 (0) 20 3530 1048
- Richard Fox
- Senior Director
- +44 20 3530 1444
Media Relations: Peter Fitzpatrick, London, Tel: +44 20 3530 1103, Email: email@example.com.
Additional information is available at www.fitchratings.com.
The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.
Applicable criteria, 'Sovereign Rating Methodology', dated 15 August 2011 are available at www.fitchratings.com.
Applicable Criteria and Related Research:
- Sovereign Rating Methodology
(END) Dow Jones Newswires
© Copyright Zawya. All Rights Reserved.