Bahrain Mirror: Global ratings agency Standard and Poors (S&P) revised its outlook on Bahrain to positive from stable following the implementation of the government's budget-deficit-reducing measures and other reforms.

The agency said that Bahrain has so far received $3.7bn tranche from the $10bn Gulf financial support.

It explained that a large part of the money received by Bahrain went to support the Foreign Exchange Reserve Center, noting that this contributed to "improving Bahrain's external flexibility and maintaining confidence in the exchange rate peg."

S&P noted that "Bahrain's financial situation remains sensitive due to falling oil prices."

The agency expected the government to implement further reforms to keep the fiscal deficit on a declining path.

Fiscal deficit is expected to decline to 4.2% in 2022, compared with an average of 12% over 2015-2017, but will fall short of the government's balanced budget target.

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