Bahrain Mirror: Fitch Ratings expected a limited direct impact on Bahrain's economy as a result of cutting ties with Qatar.
The agency affirmed the sovereign's Long Term Foreign- and Local-Currency Issuer Default Ratings (IDR) of Bahrain at 'BB+'.
Fitch has downgraded Bahrain's outlook to ‘Negative' from ‘Stable'. However, Fitch's proprietary SRM assigns Bahrain a score equivalent to a rating of 'BB+' on the Long-Term FC IDR scale.
The agency said in a statement that that the slow progress on terms of the new budget and medium-term financial strategy highlights the difficulty of building consensus about the next phase of the financial control procedures. Fitch expects that cutting ties with Qatar would affect Bahrain's growth.