GCC downgrades point to rising pressure on Opec economies


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Issue 1010 - 18 Feb 2016 | 3 minute read

Standard & Poor’s (S&P) on 17 February downgraded Saudi Arabia, Oman and Bahrain, which the ratings agency said reflected its expectations that oil prices would stay lower for longer. Downgrades of Gulf Co-operation Council (GCC) sovereign ratings highlight the worsening environment for regional economies more than one year into the Saudi-led battle for oil ‘market share’. With several governments planning to increase foreign borrowing to counter rising deficits, downgrades add to the cost of loans and add to pressures on dollar peg currencies like the Saudi riyal.

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