S&P: GCC Growth Hindered by Double Whammy of COVID-19, Low Oil Prices

SourceAl Bawaba
SectorOil & Gas
CountryGCC

Since mid-March, we have taken negative rating actions on 16 rated regional players, mostly amid increased pressure from the global pandemic and a sharp fall in hydrocarbon prices. (Shuttrstock) S&P Global Ratings has seen an abrupt and severe global credit downturn caused by the Covid-19 pandemic, with corporates and infrastructure players in the GCC countries feeling the effects, according to a new report. "Since mid-March, we have taken negative rating actions on 16 rated regional players, mostly amid increased pressure from the global pandemic and a sharp fall in hydrocarbon prices, and significantly lowered our economic growth forecasts for the GCC countries," said S&P Global Ratings credit analyst Timucin Engin. “We now expect a mid-to-high single digit real GDP contraction for most rated GCC sovereigns in 2020 and operating conditions to remain weak...read more...