Moody’s lowers rating of Oman and Bahrain, instead other countries … – Romandie.com

Moody’s lowers rating of Oman and Bahrain, up the other Gulf countries on negative watch

Dubai – Moody’s downgraded two Gulf countries, Oman and Bahrain, and placed the other oil-exporting countries in the region under surveillance for a possible downward revision of its rating, the fall in crude prices has weakened their economies.

the downgrade reflects the impact of the significant decline and continues in oil prices, according to a statement from the ratings agency released Friday night.

the review of Moody’s regards Saudi Arabia, which has seen its rating downgraded two notches to A- last month, as well as the United Arab Emirates, Kuwait and Qatar.

The rating agency believes that the oil barrel price should be around $ 33 in 2016, $ 38 in 2017 and 48 dollars in 2019.

The note was from Bahrain lowered one notch to Ba1.

oil and gas account for 75% of exports and had between 2010 and 2014 to 86% of budget revenues of the State, which is a relatively small exporter recalls Moody’s.

Meanwhile, Oman saw its rating lowered two notches to A1. For this country, oil and gas account for 90% of fiscal revenues.

The Oman is less financially solid, the amount of its financial assets representing only three years of spending, said the rating agency.

The drop in oil prices has deteriorated trade balances, economies and therefore the credit profiles of the Gulf states, according to Moody’s.

In Saudi Arabia, oil now accounts for 84% of exports, 40% of gross domestic product (GDP) and 62% of consolidated budget revenues.

Before the fall in prices of oil revenues from black gold represented about 90% of these revenues.

Between 2013 and 2015, the oil revenues of the Kingdom, as a percentage of GDP, fell 23%, while the budget balance moved from a surplus of 6.5% of GDP to a deficit of 15%.

During the same period, the balance of current trade of Saudi Arabia has slid from a surplus of 18.2% of GDP to a deficit of 5.7%, says Moody’s.

the countries of the Gulf cooperation Council (GCC) have been forced to take austerity measures to reduce their subsidies for energy to counter the decline in oil revenues .

Moody’s pointed out last month that these measures would help reduce the budgetary problems of these countries but would not be enough to erase the deficits born of falling oil prices.

bur-oh / lyn / pg / mcj / eb

MOODY’S CORP.

(© AFP / March 5, 2016 14:15)

(AFP / 03.05.2016 14:17) ->