Wednesday 18, February 2009 by
Pressure on Bahrain’s sovereign ratings increase
The sharp drop in international oil prices and spillovers from the global financial crisis pose major challenges to Bahrain’s A sovereign credit rating, according to Capital Intelligence. But while downside risks have increased, a change in the rating or stable outlook is not yet warranted given the strong starting position for the public and external finances, the authorities’ track record of sound macroeconomic management, and Capital Intelligence’s expectation that oil prices will trend higher over the medium term.
