Ammon News - Standard & Poor's credit rating agency (S&P) announced that it has affirmed Jordan's long-term sovereign credit rating to remain at the level of (B+/B), with a stable outlook.

This confirmation comes in light of the regional challenges and geopolitical uncertainty in the region and in the midst of a wave of lowering the credit ratings of countries in the region and in the world due to the state of uncertainty.

Standard & Poor's attributed the fixation of Jordan's rating to the success of Jordanian financial policy in maintaining financial stability despite regional challenges and the success of public finance in reducing the deficit and placing debt on a safe, gradual decline curve.

The S&P pointed to the success of monetary policy in maintaining monetary and banking stability in Jordan, indicating that Jordan has stable financial and monetary policies that will help it deal with the external crises facing the region, most notably the war in Gaza.

The S&P also confirmed the importance of the success of the financial and monetary reform program implemented by Jordan in cooperation with the International Monetary Fund (IMF) and the strong international support that Jordan enjoys.

The IMF's Board of Directors recently approved a four-year arrangement under the Extended Fund Facility (EFF) with Jordan, worth $1.2 billion for a period of four years to continue implementing economic and financial reforms after successfully completing all the requirements of the previous program.

On the level of public finances, the S&P’s expectations indicate the success of the fiscal policy by reducing the general government deficit to 1.1% of GDP in 2024, and reducing the percentage of net general government debt in the coming years to reach 78.9% in 2027.

The S&P indicated an increase in foreign reserves at the end of January of the year by $900 million since the beginning of the conflict in Gaza, to reach $19 billion, and the expectation that the average ratio of the current account deficit to GDP will decrease during the years 2024-2027 to reach 4.5% compared to 7.2% during the years 2020-2022.