S&P turns Bahrain view to positive

S&P said it revised its outlook on Bahrain to positive from stable and affirmed its B+ long-term foreign- and local-currency sovereign credit ratings.

“The positive outlook on Bahrain reflects the government's ongoing implementation of the updated fiscal balance program (FBP) via expenditure cuts and revenue-enhancing initiatives, including the doubling of the value-added tax (VAT) rate to 10% from 5% on Jan. 1, 2022. Preliminary fiscal data point to a minor balanced-budget position underpinned by a 120% increase in nominal tax revenue year on year, surpassing projected annual inflation of about 4%,” S&P said in a press release.

Bahrain delivered a record current account surplus of about 17% of GDP, supported by high oil and aluminum prices, the agency noted.

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