International credit score scores company Fitch downgraded Bahrain’s long-term foreign-currency issuer default ranking to “B” from “B+” on Monday, citing excessive public debt, massive fiscal deficits and low international alternate reserves.
The dominion’s excessive reliance on hydrocarbon earnings in addition to decrease oil income, greater curiosity prices and a considerable enhance in public sector pay have lifted its fiscal deficit lately.
“The downgrade displays Fitch’s expectation that very excessive authorities debt/GDP will proceed to rise, regardless of the implementation of a fiscal consolidation package deal,” Fitch stated in a press release.
Late final yr, Bahrain introduced fiscal reforms together with greater gas costs and tariffs on electrical energy and water to bolster public funds.
The company maintained the dominion’s outlook at “steady.”
Peer company S&P additionally downgraded the dominion’s sovereign credit standing to “B” in late November final yr.
