Standard & Poor's Global said that the credit ratings of Bahrain, Qatar and the Sultanate of Oman will be more vulnerable to harm than other conflicts that may expand and prolong in the Gulf region amid
the aftermath of the killing of the Iranian military commander Qassem Soleimani in Iraq.
Analysts at the Standard & Poor's Corporation said in a report that if tensions continue to rise, the support that the public budget may take from higher oil prices
is expected to be overshadowed by capital outflows, thereby leading to a decline in economic growth.
The report stated, “We consider that Bahrain and the Sultanate of Oman are the most exposed to the outflows of foreign funds, given their high needs for external financing.”
“The Sultanate’s dependence on external debt is a key factor in the institution’s negativity regarding its sovereign rating (BB / B), and the high-risk premium in the event of an
escalation and expansion of the conflict may put more pressure on the already high debt service costs.” The report added that Abu Dhabi, Kuwait, and Saudi Arabia, as well as
the State of Qatar, are expected to be “in a better position due to their large balance of government foreign assets that can be used” while stating that Iraq's (B-)
classification already contains a high degree of political risk.