GCC sovereigns must keep up with structural reforms to retain strong credit ratings - The National

GCC sovereigns must keep up with structural reforms to retain strong credit ratings - The National:

"Member countries of the GCC have traditionally been among the strongest rated sovereigns, maintaining very low debt levels thanks to oil-related fiscal revenues.

The credit profiles of GCC sovereigns remain strong, and the lower oil price environment since 2015, has triggered the sort of crisis which could generate great future opportunities if managed correctly: in other words, through the implementation of deep structural reforms.

International rating agencies provide a key indicator of sovereign creditworthiness and their opinions influence investor decisions and affect the cost of sovereign debt. The “big three” rating agencies (Moody’s, S&P and Fitch) have already reflected the deteriorating credit outlook in the region with 21 rating downgrades among GCC sovereigns since September 2014."



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