On Thursday, credit rating agency "Moody's" raised the long-term rating of Jordan's government securities in both local and foreign currency to Ba3 from B1. Moody's also upgraded the ratings of Jordan's unsecured foreign currency debt program and the medium-term bond program to Ba3 and (P)Ba3 from B1 and (P)B1, respectively. The outlook was changed to stable.
Moody's stated that the upgrade reflects effective management of macroeconomic and public finances, as well as risk mitigation measures, which Moody's expects will continue to provide a reliable buffer against economic shocks. The agency praised Jordan's commitment to implementing significant structural reforms, enhancing the business environment through the new investment law, and stabilizing public finance indicators.
Moody's projected that public finance indicators would remain stable in the coming years, with the government budget deficit expected to range between 1.5% to 2% of GDP during 2024-2025, decreasing to about 80% of GDP by 2028, down from approximately 90% in 2023.
