Moody's raising Bahrain's sovereign rating from negative to stable and confirming its credit rating at B2, validates that the kingdom's financial and economic conditions have improved, said the Bahrain Association of Banks (BAB).

 

Dr Waheed Al Qassim, BAB's CEO, emphasised the significance of Moody’s upgrade, which came as a result of high oil prices since early 2021 and its expectations that oil prices will remain high in the coming years. This will result in a more balanced budget and reduce pressure on liquidity and the accumulation of public debt, he said. 

 

This is in addition to the government’s commitment to implement a fiscal balancing programme, which raises the potential of additional financial assistance from neighbouring GCC sovereign states in a timely manner if necessary.

 

Investment destination

“Today, we are even more motivated to highlight the benefits of Bahrain as a desirable investment destination and to promote the government's balanced economic strategy, which focuses on diversifying the economy and promoting the private sector. Bahrain's fiscal policies have improved financial stability in the kingdom and helped to mitigate the negative consequences of economic issues. This had a beneficial influence on Bahrain's banks and financial institutions while also improving their solvency and liquidity,” Dr Al Qassim added.-- TradeArabia News Service