Mubasher: Fitch Ratings expected a limited direct impact on Bahrain’s economy as a result of breaking ties with Qatar, according to a recent statement.

The Bahrain’s ban on flights by Qatar Airways could provide an opportunity for Bahrain-owned Gulf Air to seize market share on regional routes as well as reducing reliance on government subsidies.

Fitch has downgraded Bahrain’s outlook to ‘Negative’ from ‘Stable’, the statement added.

“Fitch's proprietary SRM assigns Bahrain a score equivalent to a rating of 'BB+' on the Long-Term Foreign Currency IDR scale,” the rating agency said.

Fitch Rating also affirmed the sovereign's Long Term Foreign- and Local-Currency Issuer Default Ratings (IDR) of Bahrain at 'BB+'.