Moody’s Investors Services on Tuesday lowered its outlook on Bahrain’s debt rating to negative from stable as oil prices have declined “well below” the Gulf island’s budgetary plans and the credit crunch hurts the financial industry.
The credit rating agency warned that with limited currency reserves, Bahrain “may not have the resilience to absorb the price shock and avoid impairment to its credit fundamentals.” Bahrain is rated A2 by the agency – five notches above the speculative grade threshold.
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