Global credit ratings agency Fitch downgraded Bahrain's ​long-term ⁠foreign-currency issuer default rating to "B" ‌from "B+" on Monday, citing high public ​debt, large fiscal deficits and low foreign ​exchange reserves.

The kingdom's ​high reliance on hydrocarbon income as well as lower ⁠oil revenue, higher interest costs and a substantial increase in public sector pay have lifted ​its ‌fiscal deficit ⁠in recent years.

"The ⁠downgrade reflects Fitch's expectation that very ​high government debt/GDP will ‌continue to rise, ⁠despite the implementation of a fiscal consolidation package," Fitch said in a statement.

Late last year, Bahrain announced fiscal reforms including higher fuel prices and tariffs on electricity and water to bolster ‌public finances.

The agency maintained the kingdom's ⁠outlook at "stable."

Peer agency ​S&P also downgraded the kingdom's sovereign credit rating to "B" in ​late November ‌last year.

 

(Reporting by ⁠Rishab Shaju in ​Bengaluru; Editing by Sahal Muhammed)