AMMAN (AFP) -Standard & Poor’s on Wednesday lowered Jordan’s long-term local-currency sovereign credit rating to “BB” from “BB+” expressing concern about the country’s economy and political situation.
The ratings agency also maintained its “BB/B” long- and short-term foreign-currency sovereign credit ratings on the Kingdom as well as the short-term local-currency rating at “B”.
“The outlook is negative. The recovery rating is ‘4’. The transfer and convertibility assessment is ‘BBB-’,” the agency said in a statement.
S&P said Jordan, like many other Arab countries in 2011, is under public pressure to meet demands for political and economic reform.
“At the same time, the economy has suffered external shocks from commodity price inflation and the fallout from regional instability, which has resulted in slower economic growth and larger fiscal deficits,” it added.
“However, in our view, these challenges are partially mitigated by Jordan’s close relations with donor countries supporting comparably modest external borrowing needs, though these are rising…”
Note by the editor: It seems Jordan is ‘in good company’, sharing the fate of more developed nations…