LONDON: Fitch says that Bahrain will continue to benefit from savings through the implementation of GCC development projects financed by Kuwait, Saudi Arabia, and the UAE. Lower oil prices are not assumed to impact the flow of funds from these countries.
Fitch assumes there will be no challenge to the rule of the royal family or the current succession. Fitch assumes no material deterioration in the internal security situation but also does not expect a comprehensive political solution to be achieved in the near term.
“Bahrain is in a volatile region and its rating factors in existing tensions and conflicts which are assumed to continue. Fitch assumes that regional geopolitical conflicts will not directly impact Bahrain or its ability to trade,” Fitch in a statement said.