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GCC: Agencies adjust ratings outlooks
Moody’s Investors Service has downgraded its rating of Qatar from Aa2 to Aa3 with a stable outlook. The ratings agency said its decision was due to a weakening of Qatar’s external position and uncertainty over the sustainability of its growth model beyond the next few years (see Risk management report). Moody’s upgraded its outlook for both Kuwait and the UAE from stable to negative, while affirming the two sovereign’s ratings of Aa2. This was a result of their governments’ policy responses to the lower oil price environment. Standard & Poor’s has revised its outlook for Bahrain from stable to negative, while affirming its BB-/B rating. It said the shift was due to Bahrain’s weak fiscal position.
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