By Stephen Nakrosis
S&P Global Ratings on Friday raised its outlook on Bahrain to positive from stable and affirmed the country's 'B+/B' ratings.
S&P said the brighter outlook reflects expectations that Bahrain's government will continue fiscal reforms to reduce the country's budget deficit, and that the country could benefit from additional support from other Gulf Cooperation Council sovereigns if necessary.
Bahrain's economy is also benefiting from an increase in regional activity tied to elevated oil prices, S&P added. In the first half of this year, the country posted a record current account surplus of about 17% of GDP, supported by high oil and aluminum prices, according to S&P.
The ratings agency also said "Bahrain's relatively diverse economy benefits from proximity to the large Saudi Arabian market, strong regulatory oversight of the financial sector, a relatively well-educated work force, and low-cost environment."
Write to Stephen Nakrosis at stephen.nakrosis@wsj.com
(END) Dow Jones Newswires
11-25-22 1653ET
