LONDON: Credit rating agency Fitch said it has downgraded Bahrain’s long-term foreign-currency issuer default rating to ‘B+’ from ‘BB-’, with the cut reflecting the combined impact of lower oil prices and the coronavirus outbreak on the country.

Bahrain’s outlook is stable, Fitch Ratings said in a statement yesterday.

The pandemic and the lower oil prices have marked increases in the budget deficit and government debt, and caused a sharp gross domestic product contraction for Bahrain, Fitch said.

Bahrain’s government revenue fell 29 per cent in the first half of 2020, the country’s state news agency said on Monday.

Fitch said it forecast the state budget deficit to widen to 15.5pc of GDP this year from 4.6pc of GDP last year.

The small oil producing Gulf state was bailed out in 2018 with a $10 billion aid package from wealthy Gulf neighbours to avoid a credit crunch and had been working to plug its budget deficit.

© Copyright 2020 www.gdnonline.com

Copyright 2020 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).

Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. Read our full disclaimer policy here.