Mubasher: Moody's Investors Service has assigned B2 senior unsecured rating to the $1 billion 12-year bond issued under Bahrain’s new Global Medium Term Note Program, according to a statement released on Thursday.
The rating assigned to the bonds is similar to the long-term issuer rating of Bahrain that is supported by its high per capita income levels, relatively diversified economy, and robust growth dynamics.
“Over time, a more rapid and significant fiscal consolidation than currently expected, which would set the government's debt burden on a stable and eventually declining path, would likely prompt us to upgrade the rating,” Moody's said.
The rating agency noted that it might downgrade the rating should estimates showed that fiscal consolidation will be materially slower than “the currently envisaged”.
