S&P downgrades Bahrain due to political violence

If it seems like the world is (choose your verb[melting, imploding, exploding, erupting]) it is because it is.  There is unrest in Libya, Morocco, Algeria, Egypt (still), Yemen, Iran, China and Wisconsin.  And that is just this weekend.  The financial crisis in the West has been followed by a political crisis in the Arab world which has the potential to be just as devastating, if not more so, because lack of food, not only causes starvation but political violence. 

All of which are not very appealing. Now, S&P is coming out with a downgrade and credit watch negative for Bahrain.  I'll say, given that their is daily fighting and killings and we have already seen governments topple in Egypt, Tunisia and Jordan, there is much more on the way.  Via S&P:
We have reassessed political risk in Bahrain and believe that the demonstrations of the past month will persist.

We are therefore lowering our ratings on Bahrain by one notch to 'A-/A-2' and placing them on CreditWatch with negative implications.

We expect to resolve the CreditWatch action within three months pending resolution of the turmoil.

Comments

Popular posts from this blog

October retail sales come in strong, especially auto sales

Tea Party Buffalo Pictures

How to spot a fake Tea Partier