Growth rates have been revised down
- S&P affirms Jordans sovereign rating
- Fiscal and external balances will continue to gradually improve
- Growth expectations revised down
Ratings agency Standard & Poors (S&P) has affirmed its BB-/B long- and short-term foreign and local currency sovereign credit ratings on Jordan.
The ratings agency says the stable outlook reflects the expectation that Jordans fiscal and external balances will continue to gradually improve. Fiscal deficits are gradually narrowing, despite pressures posed by the difficult geopolitical environment in the region, but the ratings remain constrained by high government debt and external imbalances.
S&P has also revised its 2015 growth expectations for Jordan down slightly based on weaker regional demand, although lower oil prices for the net energy importer will boost foreign investment to support the countrys medium-term growth prospects.
Significant regional instability related to the ongoing conflict in Syria and Iraq continues to affect Jordans key credit metrics, and we expect economic growth to be 3 per cent in 2015, says S&P. Despite these pressures, Jordan has made progress on consolidating its public finances and the low oil price environment should support its fiscal and external performance going forward.