At the same time, the rating agency affirmed the sovereign’s short-term foreign and local currency rating at ’B’. The outlook for all ratings remains negative.
CI expects that the Kingdom’s fiscal and external balances would weaken significantly over the next 12 months due to the impact of lower oil prices and the coronavirus (aka COVID19 or Chinese Plague)
...the twenty first century equivalent of bubonic plague, only instead of killing off a third of the population of Europe it kills 3.4 percent of those who notice they have it. It seems to be fond of the elderly, especially Iranian politicians and holy men...pandemic.
The rating agency also said the current volatility and risk aversion in global financial markets would hamper Bahrain’s capacity to secure the funds needed to cover its large financing needs. The downgrade also takes into account the decline in the country’s net external asset position, large pressures on its modest level of international assets, and limited capacity to withstand a prolonged period of low oil prices.