Moody's cuts Bahrain's economic ratings

Ratings agency says further cuts could follow due to govt's weak fiscal position
Moody's cuts Bahrain's economic ratings
(Photo for illustrative purposes only)
By Reuters
Wed 18 Sep 2013 06:28 PM

Moody's Investors Service on Wednesday cut Bahrain's government rating by one notch to Baa2 and warned further cuts could be coming, citing the government's weak fiscal position and an outlook for lower-trend economic growth over the medium term.

The outlook is negative.

"The negative rating outlook reflects the high degree of event risk, particularly regarding Bahrain's susceptibility to domestic and regional geopolitical instability, as well as potential negative impact from an oil price shock," Moody's said in a statement.

Standard & Poor's and Fitch both rate the country BBB with a stable outlook.

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