The Standard & Poor's credit rating agency revealed that Gulf countries' companies experienced a sudden and severe decline in their credit ratings, due to the repercussions of the Coronavirus epidemic, indicating that they have taken negative rating measures on 16 companies in the region since mid-March, most of them amid increased pressure from the global epidemic and a sharp drop in hydrocarbon prices, which has led to lower expectations for economic growth for the Gulf countries.
According to the agency, Kuwait has set huge goals that may affect the employment of foreign workers negatively during the coming period, expecting that most of the region's economies will witness a medium to high contraction, and it is likely that operating conditions will remain weak during the coming quarters, indicating that as a result, most Gulf companies’ profits and revenues will be affected, with a slight decrease in the outlook for relatively more flexible sectors, such as telecom.
The agency suggested that most sectors and markets in the region be subjected to comprehensive pressure, with some feeling more of this, with slowing economic activity, declining income available for spending and weak employment trends, indicating that the aviation, tourism and energy sectors will be the most affected at the regional level.
Source (Al-Rai Newspaper-Kuwait, Edited)
