Moody's Credit Rating Agency Expects 14% Rise in Bahrain's Budget Deficit
2015-04-28 - 1:21 am
Bahrain Mirror: Moody's Investors Service, a credit rating agency, expected that Bahrain's budget deficit will increase to 14% of its GDP in 2015, and shrink to 10% in 2016.
In its report, Moody's added that it forecasts a GDP growth of around 2.7% in 2015 and 2016 with the non-oil sector as driving force.
Last week, the rating agency also downgraded Bahrain's long-term government issuer rating to BAA3 from BAA2, which means the kingdom's credit strength declined from average to less than average.
Moody's also stressed that with the absence of significant reforms, the island nation's deficits will remain wide, leading to a further rise in its debt burden over the coming years, which is reflected in the negative rating outlook.
Furthermore, Moody's expected that the Bahraini government's debt burden would increase to more than 70% of GDP by end-2016 from around 46% by end-2014.
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