Credit rating agency S&P has revised its outlook on Bahrain from stable to positive.
In addition, Bahrain’s long and short-term foreign and local currency sovereign credit ratings were affirmed at B+ and B respectively.
The upgrade is based on the prospect that the Bahraini government will continue to implement fiscal reforms that reduce the country’s budget deficit.
S&P referred to Bahrain’s economy benefitting from a surge in local activity caused by rising oil prices.
“We expect the Bahraini economy will expand 4.8% in 2022 before decelerating to about 2.5% over 2023-2025 on the back of gradually declining commodity prices, slowing global growth, and tightening global financing conditions,” stated the rating agency’s report.
The upgrade continues an upward trajectory for Bahrain over the last 12 months. In April, fellow rating agency revised its outlook on Bahrain from negative to stable.
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