S&P Global has revised Bahrain's outlook to negative due to continued financial pressures, with its credit rating affirmed at B+/B. According to the agency, the decline in oil prices and the suspension of financial reforms will contribute to keeping government debt on an upward trajectory in the coming period. Continued market volatility and weak financing conditions will also lift pressure on Bahrain's interest burden.
Bahrain's negative outlook points to continued fiscal risks, as relatively low foreign exchange reserves remain a limiting factor for the Kingdom. The agency expects the fiscal deficit to rise to about 7 percent of the Kingdom's GDP in 2025, compared to 5.2 percent in 2024 and 4.9 percent in its previous review.
Source (CNBC Arabia Website, Edited)
