Credit risk rises for Gulf crude exporters on virus fears – ZAWYA

Credit risk rises for Gulf crude exporters on virus fears – ZAWYA

The rise, though not huge, reflected risk-off sentiment in debt markets which could translate into further weakness in coming days, fund managers said.. DUBAI- The cost of insuring against sovereign debt defaults by Gulf Arab states has risen in recent days as markets price the risk the coronavirus outbreak represents for the crude export-dependent region.. The United Arab Emirates on Tuesday suspended all flights to and from Iran due to the spread of the coronavirus in the Islamic republic, while Kuwait, Bahrain and Oman reported their first cases this week.. For other Gulf countries - particularly those with high debt ratios - lower oil prices and disruptions to crude exports could impact fiscal balances, further widening deficits, analysts have said..