S&P cuts Bahrain credit ratings to B+

ReutersS&P Global Ratings lowered Bahrain’s long-term foreign and local currency sovereign credit ratings to ‘B+’ from ‘BB-’ on Friday, prompting Bahrain’s central bank to reaffirm the country’s currency peg to the U.S. dollar.

S&P Global Ratings said the rating cut was due to weak external liquidity and increasing financial risk due to more limited access to international capital markets.

The Central Bank of Bahrain said in a statement received on Saturday that the kingdom “remains committed to maintaining a fixed rate regime with the U.S. dollar” for its dinar currency, adding that the IMF has endorsed this policy.

“Despite the current low oil price, the economy continues to grow with low inflation reflecting the Government’s ongoing initiatives to foster sound fiscal and economic policies,” the statement said.


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