The recent credit rating downgrade for Bahrain by Standard & Poor's appears to be based on three main indicators. Firstly, the budget deficit. Secondly, the rise in public debt. Thirdly, forecasts for a continued decline in oil prices. Regarding oil prices, forecasts point to ongoing weakness in oil markets, and consequently, a likelihood of oil prices falling below the $60 mark. As for public debt, it is still lower than in some developed countries like Italy and not much higher than in France. Although it is considered relatively high, at around 120% of Bahrain's Gross Domestic Product. Concerning the budget, the deficit is estimated at approximately 7.6% of GDP.
