• ABJ: The announcement by Standard & Poor’s aligns with announcements by other global rating agencies that have upgraded the Kingdom’s credit rating.
• Al-Salem: Raising the Kingdom’s credit rating is one of the results of the structural reforms being carried out in the Kingdom.
• Al-Salem: Reports of the credit rating upgrade emphasize efforts to control public finances and the efforts of the Ministry of Finance in sustaining public debt.
• Al-Salem: The credit rating reports are based on a thorough reading of national economic indicators and various regional and international developments, as well as a realistic and methodical assessment.
• Al-Mahrouq: Raising the credit rating has significant implications and confirms the confidence of international institutions in the resilience, flexibility, and stability of Jordan’s economy.
• Al-Mahrouq: The achievements recently made by the Kingdom came within the framework of a comprehensive economic modernization represented by the Economic Modernization Vision.

ABJ praised the announcement by Standard & Poor’s Global Agency of raising Jordan’s long-term sovereign credit rating in local and foreign currency from B+ to BB-, with a stable outlook. This marks the first such upgrade in 21 years. The association stated in a related press release that the agency’s announcement is in line with what other global credit rating agencies have announced this year. Moody’s upgraded the long-term credit rating of the government’s debt from B1 to Ba3, while Capital Intelligence raised the long-term sovereign asset credit rating of Jordan from B+ to BB-, changing the outlook from positive to stable.

Mr. Bassem Khalil Salem, ABJ Chairman, stated that the credit rating upgrade is one of the results of the deep structural economic and financial reforms implemented by the government to strengthen the resilience and growth of the national economy, in accordance with the royal vision and the direct directives of His Majesty King Abdullah II.

Al-Salem pointed out that reports of the credit rating upgrade emphasize the efforts of the Ministry of Finance in managing public finances and working towards the sustainability of public debt. He noted a series of reforms that contributed to broadening the tax base, improving the business environment, and placing public debt on a gradual downward path over the coming years. These reforms also address spending challenges with a focus on increasing capital expenditures, in addition to the decline in the primary deficit as a percentage of GDP.

Al-Salem also stressed the strong international support for Jordan, which stems from prudent management and governance in fiscal and monetary policies. He highlighted the resilience of Jordan’s economy and its ability to withstand successive crises over the past few years. Salem noted that credit rating reports are based on a precise reading of the national economy’s elements and indicators, as well as various regional and international developments. These reports provide a realistic and methodical evaluation of these changes and their impacts on the current and future state of the national economy.

Al-Salem stated that raising Jordan’s credit rating has significant implications for the national economy and public finances, enhancing international confidence in the Jordanian economy. It also creates a more attractive environment for economic growth and foreign investment. He pointed out that the credit rating upgrade facilitates access to global financial markets, allowing for financing on better terms and at lower costs. This will positively reflect on the debt burden and public finances.

Meanwhile, Dr. Maher Al-Mahrouq, ABJ Director General, confirmed that raising the credit rating has many indications, highlighting international institutions’ confidence in the resilience, flexibility, and stability of the Jordanian economy in facing challenges. He also noted that there is a consensus among international rating agencies on the stability of the Kingdom’s macroeconomy, the strength of its financial and economic situation, and the robustness of its institutions. This also reflects the success of economic reforms and measures implemented over the past few years.

Al-Mahrouq pointed out that raising the credit rating indicates an economic approach aimed at achieving and building upon national strategic economic objectives. He noted that most of the recent achievements made by the Kingdom came within a comprehensive economic modernization framework represented by the Economic Modernization Vision, which has provided a strong national framework to drive efforts and enhance achievements.

Al-Mahrouq also confirmed that the credit rating upgrade resulted from the government’s implementation of a set of structural reforms, particularly in the area of public finance, in addition to the flexibility and resilience of the Jordanian economy. He added that the upgrade reflects the strength of the monetary policy and monetary stability in the Kingdom, and the success of significant efforts led by the Central Bank of Jordan. These efforts have resulted in high levels of foreign reserves, low levels of dollarization, low inflation rates, and price stability, as well as the strength and robustness of Jordan’s banking sector.

Al-Mahrouq emphasized the importance of the timing of these positive announcements from credit rating agencies, especially as many countries are experiencing a decline in their credit ratings or are working intensively to maintain their ratings.