Bahrain is already “junk”: Moody’s warns oil sheiks – n-tv.de NEWS

 Economy
 

 Saturday 05 March 2016

 
 
 

 
 The times when the countries were swimming in petrodollars in the Gulf, are over. Due to the low oil prices, the coffers are empty. This brings the credit inspector on the scene. The pressure to stabilize the oil price, growing for oil producers.
 

 
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The credit auditors of Moody’s threaten Saudi Arabia and other Gulf states with a downgrade. Also for the United Arab Emirates, Kuwait and Qatar lowered the experts the rating outlook to negative. The background is that the state revenues of oil producers are significantly shrunk due to the fall in oil prices.

It is reported that the ratings experts now want to look carefully at whether the States can reduce their dependence on oil revenues. The bonds in the island-state of Bahrain in the Persian Gulf assesses the Agency as so-called scrap installations ( “junk”). She lowered its grade to “Ba1″. The same rating was Russia. The second largest oil producer in the world is also facing a further downgrade.

The Russian government is working for words of Finance Minister Anton Siluanow from taking into account in the medium-term budgetary plans to lower oil price. In mid-February already had Standard & amp; Poor’s (S & P). Reduced the ratings of producing countries

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Given the falling oil prices the major producing countries Russia, Saudi Arabia, Qatar and Venezuela to freeze their production. Provided however, that to join other oil-producing nations. One production cutbacks given Saudi Arabia on Saturday again a rejection. The country will maintain its market share, said Foreign Minister Adel al-Dschubeir told journalists in Paris.

The idea that his country could reduce the funding, while other countries produce more, is unrealistic. Market forces given the price. The markets would recover, the minister added.

Ratings are States of considerable importance. What significance have these Einstugungen, could be observed during the European debt crisis. The ratings of the agencies have a direct impact on the cost of financing governments. If the credit rating good, the Staatem can procure the capital market money at favorable interest rates. The worse the rating, the more expensive is tapping the capital market. That is, the credit acts directly back to the debt. The financial difficulties exacerbated by it.

 
 

  Source: n-tv.de
 

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