#Iran's Soleimani killing has rapidly escalated Gulf event risks: S&P Global - Reuters

Iran's Soleimani killing has rapidly escalated Gulf event risks: S&P Global - Reuters:

Bahrain, Qatar and Oman’s sovereign ratings would be the most vulnerable to a protracted and wider conflict in the Gulf region following the killing of Iran’s top military commander Qassem Soleimani, S&P Global said on Monday. 

If tensions continued to escalate, the fiscal boost that could come from higher oil prices would likely be offset by capital outflows and weaker economic growth, a group of S&P’s analysts said in a report.

“We view Bahrain and Qatar as more vulnerable to outflows given their high external financing needs, relating to their respective banking sectors,” they said.

“Oman’s reliance on external debt is a key contributor to our negative outlook on the ‘BB/B’ sovereign rating; a higher risk premium in the event of escalating conflict could further pressure already-rising debt-servicing costs.”