S&P Affirms Bahrain's 'BBB' Rating; Outlook Stable

(RTTNews) - Standard and Poor's Rating Services on Friday confirmed its 'BBB/A-2' rating on the Bahrain economy, and maintained the Stable outlook, saying that the ongoing economic recovery would limit the increase in the country's sovereign debt.

Bahrain's strong external position, its relatively stable growth prospects and the inflow of Gulf Cooperation Council (GCC) development funds were the main factors the agency has considered while affirming the rating.

S&P forecasts Bahrain's per capita GDP growth for 2014-2017 at 1 percent, which is low compared to peers at similar wealth levels. The net general government debt is forecast to rise to 12 percent of GDP by 2017.

The agency, meanwhile, noted that the ratings are constrained by Bahrain's unresolved domestic political tensions and its fiscal dependency on sustained high oil prices and international donor support.