July 28 (Reuters) - Moody's Investors Service downgraded Bahrain's long-term issuer rating to B1 from Ba2, with a negative outlook, and said the credit profile of the kingdom would continue to weaken materially in the coming years.
The Bahrain government does not show any indication to use its diversified economic base to reduce reliance on oil-related income, Moody's said.
"The rating agency expects Bahrain's government debt burden and debt affordability to weaken further significantly over the coming two to three years," Moody's said.
Moody's said there is a lack of clear and comprehensive consolidation strategy in Bahrain despite some fiscal reform efforts.
Moody's also lowered Bahrain's long-term foreign-currency bond ceiling to Ba2 from Baa3 and its long-term foreign-currency deposit ceiling to B2 from Ba3.
(Reporting by Pranav Kiran in Bengaluru; Editing by Maju Samuel) ((Pranav.Kiran@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 1130; Reuters Messaging: pranav.kiran@thomsonreuters.com@reuters))
