India, Feb. 24 -- Fitch Ratings lowered the outlook on Bahrain's sovereign ratings to 'negative' on Monday, citing increasing debt burden of the government.
The outlook was downgraded from 'stable', while the credit rating was affirmed at 'B+'.
The rating agency said sustained wide deficits amid a high and rising interest burden, increasing debt/GDP and further delays to planned reforms were the reasons for lowering the outlook.
Fitch noted that Bahrain's public finances remain weak, with debt/GDP staying more than double the 'B' category median, high fiscal dependence on oil revenue and low levels of forex reserves.
The agency forecast the government debt to rise to 136 percent of GDP in 2026 with a continued upward trajectory over the...