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Jordan says S&P’s stable outlook supports IMF-backed reforms

Plant, Tree, Flag REUTERS/Muhammad Hamed
Jordan's central bank governor Adel Al Sharkas said the rating outlook reflected the 'soundness of the country's macroeconomic fundamentals'

Jordan’s central bank governor Adel Al Sharkas said the latest rating outlook from S&P Global reflected the “soundness of Jordan’s macroeconomic fundamentals”.

Jordan’s finance minister Mohamad Al Ississ said that S&P’s decision to maintain the kingdom’s sovereign credit rating at B+/B reflected confidence in accelerating IMF-backed reforms.

“This is the latest confirmation of Jordan’s credit rating… a collective validation across rating agencies in recent months in their confidence in Jordan’s monetary and fiscal policy,” Al Ississ told Reuters.

Ratings agency S&P noted in a report released late on Monday that Jordan was moving ahead with reforms aimed at enhancing investment, widening the tax base and targeting corruption, forecasting that fiscal imbalances will moderate in the coming years.

Several ratings agencies have in recent months either upgraded or affirmed the kingdom’s credit ratings. Last November, Moody’s upgraded the rating outlook to positive from stable.

Jordan’s commitment to IMF reforms and investor confidence in the outlook helped it to maintain stable sovereign ratings at a time when other emerging markets were being downgraded, Al Ississ said.

The IMF said at the end of last year that progress with structural reforms had cushioned the economy and strengthened macro-economic stability, boosting Jordan’s growth in 2022 despite global economic turbulence.

Al Sharkas said the rating outlook reflected the “soundness of Jordan’s macroeconomic fundamentals” at a time of global economic crisis.

“In light of the unfavourable environment, the move to categorise Jordan as a stable economy makes it an attractive destination for safe, long-term investments,” he added.