6/28/2013 1:54:21 PM
It lowered the rating agency Moody's global rating of government bonds to B1 instead of the B-2, with the outlook changed to negative from stable, because it may be lowered by two points as a result of the financial situation "deteriorating," he described.
The agency said in a statement issued yesterday that the main reasons behind the reduction is the budget, which reached 8.2% of GDP and a noticeable increase in government debt deficit.
Moody's explained that the high level of public debt payment deficit to rise by 10% of GDP between 2011 and 2012, so that now exceeds $ 23 billion, or about 76% of GDP. The agency predicted that this percentage up to 90% of GDP by next year, compared with 60% five years ago.
With this reduction be Moody's has trod agency Standard & Poor's approach on 20 May (last May) when the agency lowered the long your term classified Jordan debt foreign and local currency by one point to reach BB- instead of BB, also kept on a negative outlook to the rating Jordan . With this reduction has become the current credit rating for Jordan, according to the agency, three points less than investment grade, compared to Jordan's credit classification according to Moody's, which at least two points all investment grade.
And is similar to what is going through the Kingdom of the steps on the classification of the Kingdom of global agencies, including experienced by the year 2011, which reduced the agency "Standard & Poor's" agency "Moody's" classification of the investment environment in the Kingdom to a level "not encouraging for investment" after that trimmed agencies sovereign credit rating Jordan's local currency long-term to the level of "BB" and "" BA2 ".
And Atbahtha then the agency "Standard & Poor's" in 2011, reducing sovereign credit rating for local currency Jordanian long-term "BB +" to "BB" which led to a reduction Kingdom to a level "not encouraging for investment" after it had been in the "medium level bottom. "
The JP Morgan - the largest US banks - published a report in May (last) after the recent cuts made by the agency Standard & Poor's credit rating to Jordan as described these cuts "Balmichaimh".
Known as "S & P" company as a financial services company based in the United States, dating back to 1860 with the company, "Moody's" British know economic research to financial analysis and evaluation of public and private institutions in terms of credit and financial strength, which controls 40% of Credit evaluation of the ability in the world market.
Said JP Morgan "in spite of the support of the agency to the efforts of the Jordanian government represented by the application of a number of structural and financial reform programs, especially that Jordan currently benefit from loans through the standby arrangement with the International Monetary Fund, in addition to the investment program under the auspices of the Gulf Cooperation Council (GCC), the agency questioned the ability of these efforts to address the weak fiscal and external situation witnessed in 2012. Jordan also keep the Agency negative future outlook for the rating is due to the possibility of Jordan Kingdom adversely affected by the continuing political conflict in Syria ".algd / L s