Fitch affirms Bahrain at 'b+'; outlook stable.

Bahrain's ratings are supported by strong financial backing from partners in the GCC, the high level of economic development and a robust macroeconomic outlook. Weak public finances, high fiscal dependence on oil revenue, low levels of FX reserves and political constraints on fiscal reform all weigh on the ratings, although fiscal consolidation has made significant progress since the launch of the 2018 Fiscal Balance Programme (FBP), which was refreshed with additional measures in late 2021.

The general government budget deficit narrowed significantly in 2021, to 9.4percent of GDP from 17.1percent of GDP in 2020, owing to the rebound in global oil prices and partial...