By : Business Editor
Jordan Daily – Jordan’s credit rating has been upgraded to Ba3 with a stable future outlook by Moody’s, marking a significant achievement for the country’s economy.
During the second quarterly briefing of 2024, held by the Association of Banks in Jordan, Minister of Finance, Dr. Mohamad Al Ississ , highlighted that this accomplishment is a result of the collective efforts of all concerned parties, including leading national and economic institutions.
He emphasized that the upgrade comes at a time when other countries are grappling with downgrades or striving to maintain their stability, particularly in the wake of the economic shocks caused by the COVID-19 pandemic and the Russian-Ukrainian war.
Dr. Adel Sharkas, the Governor of the Central Bank, confirmed that the upgrade is a testament to the soundness of the economic policies implemented in Jordan, which have bolstered the economy’s resilience and capacity to withstand challenges. He noted that the timing of this achievement, amidst geopolitical instability due to the ongoing repercussions of the war in Gaza, adds to its value.
Sharks provided insight into Moody’s evaluation mechanism, explaining that the agency’s rating is based on both qualitative and quantitative analyses , pointing out that Jordan received a higher rating in some of these indicators than the overall rating, especially those related to growth dynamics, the size of the economy, and national income, as well as the effectiveness of fiscal, monetary, and overall economic policies.
The Chairman of the Board of Directors of the Association of Banks in Jordan, Basem Khalil Al-Salem, emphasized the significance of Moody’s decision to upgrade the Kingdom’s credit rating, marking the first time Moody’s has upgraded Jordan’s rating after it remained stable for 21 years.
Dr. Maher Al-Mahrouq, the Director-General of the Association of Banks, stressed that the upgrade was based on a set of key criteria, including the ability to repay, the performance of the national economy, government policies, and the level of debt and sources of financing, in addition to economic competitiveness and geopolitical and economic risks.
Al-Mahrouq confirmed that the Kingdom’s practices in enhancing resilience to face conflict in the region, in addition to the limited impact of geopolitical developments in the region, were among the important factors that contributed to this upgrade.
