Fitch cuts Bahrain

Fitch Ratings said it downgraded Bahrain's long-term foreign-currency issuer default rating to A- from A, local-currency issuer default rating to A from A+ and country ceiling to A from A+.

The agency also affirmed the short-term foreign-currency issuer default rating at F1.

The outlook is negative.

The downgrade reflects a view that recent political developments will have a short-term impact on growth and result in further fiscal expansion over the medium term, Fitch said.

Despite the regime's attempts to engage stakeholders in an inclusive national dialogue, any political reform that will appease the protestors is likely to be over an extended horizon, Fitch said.

The negative outlook reflects the economic and political uncertainties associated with a drawn-out political process, which increases the risks to the sovereign's credit profile, the agency said.

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