13 Jul 2013
(MENAFN) Fitch Ratings affirmed Bahrain’s long-term foreign currency issuer default rating (IDR) at ‘BBB’ with a stable outlook, Arabian Business reported.
The ratings agency cited positive steps that the gulf government has taken towards resolving the domestic political stalemate.
It also noted that a national dialogue had restarted with the reformist Crown Prince promoted to First Deputy Prime Minister.
Fitch said in a statement that the normalization of oil output would allow growth to strengthen to 5.5 percent this year, while capital spending, manufacturing investment and a further recovery in tourism would boost non-oil growth of around 3.5 percent.
Fitch said growth has rebounded after the political unrest in 2011, picking up to 3.4 percent in 2012 from 1.9 percent the year before.
Fitch added the stable outlook reflected its assessment that upside and downside risks to the rating are currently well balanced.
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