Moody’s downgrades Bahrain to B2 | GulfNews.com

Moody’s downgrades Bahrain to B2 | GulfNews.com:

Moody’s has downgraded the Bahrain government’s long-term issuer ratings to B2 from B1, and maintained its negative outlook.

The ratings firm said on Thursday evening that the new rating assumes Gulf Cooperation Council members will provide some financial support to Bahrain, but the negative outlook reflects the risk that the support will not be timely or comprehensive enough to maintain Bahrain’s rating at B2 through forthcoming debt repayments, including a $750-million (Dh2.75 billion) sovereign sukuk due on November 22.

At the same time, Moody’s lowered Bahrain’s long-term foreign-currency bond ceiling to Ba3 from Ba2 and long-term foreign-currency deposit ceiling to B3 from B2.