Downgraded Bahrain expected to re-tap DCM as investors stay hungry for HY

AdobeStock_Bahrain_Coronavirus_575x375_17Aug2020
By Mariam Meskin
17 Aug 2020

Struggling Gulf state Bahrain has fallen further into junk territory, with its budget deficit expected to balloon as a result of an oil price slump and the Covid-19 pandemic. But it is not all gloom, experts said, as bond markets remain wide open for high yield issuance.

Fitch downgraded Bahrain from BB- to B+ last Friday. It is now rated B2 by Moody’s and B+ by S&P.

Fitch attributed the decision to the impacts of the oil price slump and the Covid-19 pandemic on Bahrain’s budget deficit and government debt.

Bahrain has been firmly in junk territory ...

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