BAB: Bahrain's Improved Credit Rating supports budget, attracts investors
Manama, Nov. 28 (BNA): The Bahrain Association of Banks (BAB) said that Standard & Poor's raise of Bahrain's outlook from stable to positive contributes to boosting the Kingdom's financial reputation and lowering the cost of public debt and to increasing investor confidence in the attractive environment for the national economy.
The association predicted that the rest of the international credit rating agencies would follow suit in the near future.
The financial sector and banks in Bahrain reacted positively to the news of Bahrain's credit rating improvement, BAB Chairman Adnan Yousif said, especially since this improvement will soon be reflected in the classification of financial and banking institutions themselves.
"With the increase in oil prices, the success of the fiscal balance program, and the resumption of economic growth, particularly in the non-oil sectors, all signs unequivocally show that the financial and economic conditions in the Kingdom of Bahrain are beginning to improve," he said.
"The credit situation and domestic liquidity both benefit from all of this."
Adnan added that the increase in Bahrain's credit rating also highlights the significance of the substantial economic reforms that the government has been implementing lately.
They have led to fruitful outcomes despite the challenging economic circumstances that the world is experiencing, and once again demonstrates Bahrain's ability to achieve financial and monetary stability through its prudent policies, he said.
Bahrain Association of Banks CEO Dr Waheed Al Qassim, stressed the importance of the new credit rating in attracting more investments to Bahrain.
"While many countries around the world are experiencing deficits in their public budgets, a decline in their economic performance and a decrease in their credit rating, the Kingdom of Bahrain is experiencing the opposite trend, which encourages more investments to come to the Kingdom, resulting in economic prosperity, job opportunities, and overall development," he said.
"We are more committed than ever to promoting Bahrain's balanced economic policy, which focuses on diversifying the economy and fostering the private sector, and to highlighting the benefits of the Kingdom of Bahrain as the first destination for foreign investments."
Dr Al Qassim pointed out that the fiscal and monetary policies implemented by Bahrain have improved financial stability in the Kingdom and helped to mitigate the adverse effects of economic challenges. This rating will be reflected positively on Bahrain's banks and financial institutions, enhancing their solvency and liquidity and their capacity to support the country's economic recovery by increasing their activity in the fields of deposits and lending and entering into financing major projects such as energy, infrastructure and other projects.
