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

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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