Arab Today, arab today moodys places gulf states on review for downgrade
Last Updated : GMT 19:28:17
Arab Today, arab today
Arab Today, arab today

Moody's places Gulf states on review for downgrade

Arab Today, arab today

Arab Today, arab today Moody's places Gulf states on review for downgrade

Moody's review covers OPEC kingpin Saudi Arabia
Dubai - AFP

Moody's has lowered the credit ratings of Oman and Bahrain and placed the remaining Gulf oil exporters on review for downgrade, saying low crude prices have weakened their economies.

The cut was made to "reflect the impact of the continued large fall in oil prices," the ratings agency said in a statement late Friday.

Moody's review covers OPEC kingpin Saudi Arabia, whose rating Standard and Poor's cut two notches to A- last month, the United Arab Emirates, Kuwait and Qatar.

Moody's has forecast oil prices to average $33 a barrel in 2016, $38 a barrel next year and $48 a barrel by 2019.

Bahrain's rating was lowered one notch to Ba1, a grade that has some speculative elements and significant credit risk. Oman's rating was lowered two notches to A1 -- still an upper-medium grade with low credit risk.

Although a relatively small exporter, oil and gas accounted for 75 percent of Bahrain's exports and 86 percent of public revenues between 2010 and 2014, Moody's said.

As for Oman, oil and gas income made up 90 percent of government revenues. The Gulf sultanate has a comparatively weaker asset cushion, with government financial assets amounting to only about three years of spending, the agency said.

Moody's said the structural shock set off in the oil market is weakening Gulf states' balance sheets, their economies and therefore their credit profile.

For Saudi Arabia, it said oil accounts for 84 percent of exports, 40 percent of Gross Domestic Product (GDP) and 62 percent of consolidated government revenues. Before the fall in oil price, the crude income contribution was around 90 percent.

Between 2013 and 2015, revenue as a percentage of GDP declined by 23 percent and the fiscal balance moved from a surplus of 6.5 percent of GDP in 2013 to a deficit of 15 percent last year.

During the same period the kingdom's current account balance relative to GDP slid from a surplus of 18.2 percent to a deficit of 5.7 percent, Moody's said.

All Gulf Cooperation Council (GCC) states have undertaken austerity measures including cutting energy subsidies to counter the drop in oil revenues.

Moody's said last month that fuel subsidy reforms will help reduce pressure on budgets but are not enough to offset deficits resulting from low oil prices.

 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today moodys places gulf states on review for downgrade Arab Today, arab today moodys places gulf states on review for downgrade

 



Arab Today, arab today
Arab Today, arab today Fadi Kataya explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Messi visit will contribute in tourism

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Mental conflict endures

GMT 07:36 2017 Friday ,24 February

Mental conflict endures

GMT 14:02 2017 Thursday ,23 February

Two lanes to be closed near Alba roundabout

GMT 13:56 2017 Thursday ,23 February

BIDEC2017 set to attract military industries

GMT 13:51 2017 Thursday ,23 February

Estiqlal Highway to be partly closed for maintenance

GMT 13:27 2017 Thursday ,23 February

Ceramic glazing workshop launched

GMT 13:22 2017 Thursday ,23 February

Alba supports BIGS2017

GMT 11:51 2017 Thursday ,23 February

Dubai to launch driverless flying cars by this summer
View News in Arabic - Business: اقتصاد عربي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Wafaa Amer is happy for Sherihan’s return

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday