Mubasher: Moody’s Investors Service affirmed the government of Bahrain's credit rating at "Ba2" with a "Negative" outlook, according to a recent report.

The rating is endorsed by Bahrain’s high wealth levels, a diversified economy, and the positive net international investment position, the report said.

This negative outlook on the rating reflects heightened government and external liquidity risks, and the government's slow and incremental response to lower oil revenues, Moody’s added.

"In the absence of significant revenue and expenditure reforms, and given our expectation that oil prices will remain range-bound between $40-$60 per barrel over the coming years, Bahrain's fiscal deficits will stay wide and government debt will rise to 85% of GDP by 2020,” Moody's vice president, senior credit officer, and co-author of the report Steffen Dyck said.