Fitch cuts Bahrain

Fitch Ratings said it downgraded Bahrain's long-term foreign-currency issuer default rating to BBB from A-, local-currency issuer default rating to BBB+ from A and country ceiling to BBB+ from A.

Fitch downgraded the short-term foreign-currency issuer default rating to F3 from F1 and put the long-term issuer default rating on Rating Watch negative.

The downgrade reflects further material escalation in political risk in recent days following significant violent domestic protests, military intervention by Gulf nations and the imposition of a state of emergency by the Bahraini royal family, Fitch said.

The Rating Watch reflects that the political outlook is highly uncertain, the agency added.

The downgrade also reflects the risk that the political instability may harm Bahrain's attractiveness as an international financial and business center, the agency said.

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