Moody’s Investors Service today assigned a B2 senior unsecured rating to the $1 billion 12-year bond issued under the new Global Medium Term Note Program established by Bahrain.
Moody’s said in a statement that the rating was initiated by the rating agency and not by Bahrain.
The B2 rating is of the same level as that of the Bahrain government. Moody’s noted that this rating was supported by the country’s very high per capita income levels, a relatively diversified economy relative to its GCC peers, and robust growth dynamics – resulting in a “High (-)” economic strength.
Tempering this rating is Moody’s “Moderate (-)” rating of the country’s institutional strength, which is balanced by strong governance versus Bahrain’s past record in facing difficulties in implementing fiscal reforms.
Moody’s added that the rating was subject to the same long-term rating effects as the government of Bahrain.