Oman, Bahrain seen vulnerable to downgrades if the coronavirus outbreak drags on: S&P Global

Oman, Bahrain seen vulnerable to downgrades if the coronavirus outbreak drags on: S&P Global

"Pretty substantial" underlying fiscal deficits, exposure to China and high fiscal breakeven oil prices are all factors that put Gulf economies at risk of rating downgrades.. It's "fair" to say that countries such as Oman and Bahrain are vulnerable to a potential rating downgrade if the coronavirus outbreak lasts longer than expected, according to the chair of sovereign ratings at a credit rating firm.. With regard to sovereign rating downgrades in the pipeline due to the coronavirus, Gill pointed to Middle Eastern economies instead of China.. "If you exclude the investment proceeds from the sovereign wealth funds, every single Gulf economy is running pretty substantial underlying fiscal deficits," he added.. "You have pretty high breakeven oil prices," he said, singling out Oman and Bahrain..