S&P Global Ratings lowered on November 21,2025 Bahrain’s sovereign credit rating one level further into junk to ‘B’ from ‘B+’ on November 21, 2025, and changed the outlook from ‘negative’ to ‘stable,’ marking the first such adjustment since 2017. The agency cited mounting fiscal pressures, rising government debt, and continued vulnerability to weaker oil revenues. S&P anticipates that Bahrain’s net government debt will rise by about 10% of GDP in 2025, largely driven by off-budget spending and higher borrowing needs. Heavy reliance on hydrocarbons keeps the fiscal outlook sensitive to oil-price swings, despite efforts to diversify revenue. The stable outlook reflects expectations that Bahrain will continue to receive financial support from other Gulf Cooperation Council (GCC) members, who have historically stepped in with financial aid to stabilize Bahrain’s economy. Moody’s rates Bahrain at B2 with a stable outlook, and Fitch at B+ with a negative outlook.