Moody's: Jordan bond rating supported

Jordan's Ba2 foreign currency government bond rating is supported by a robust level of official foreign exchange reserves, a relatively sound and improving institutional framework, and a healthy general government balance, Moody's Investors Service said it in its new sovereign credit report.

It is also reassuring that the domestic banking system does not seem to have been significantly affected to date by the global financial turmoil, Moody's added.

However, Moody's said it cautions that Jordan's sovereign rating is constrained by a low level of economic strength that is exacerbated by weaknesses such as a high reliance on oil imports and a very wide current account deficit that creates a dependency on potentially volatile inflows of private capital.

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