Mubasher: Jordan downgraded to 'B+' on weaker government debt structure, higher external financing needs
Standard and Poor's Global Ratings (S&P) has downgraded Jordan’s ratings to ‘B+’ on weaker government debt structure and higher external financing needs, with a outlook stable, according to a recent report.
The ratings agency said that Jordan’s external vulnerabilities have increased and the structure of the government’s debt stock has weakened.
Jordan government’s debt stock to remain high, fiscal reforms to likely be slower than expected due to weak macroeconomic environment, and social pressures, the report noted.
The report indicated that Jordan’s outlook balances greater risks from slower fiscal consolidation than expected against support from bilateral donors, at rating of B+.
S&P expects Jordan to continue implementing fiscal reforms, and that Jordan's current account deficits will decline gradually with rising exports, but external funding needs will remain high.
