Mubasher: The Bank of America Merrill Lynch's Research Unit recommended keeping the Bahraini debt despite the downgrade of its rating by Moody's on Friday.
Merrill Lynch said in a research note that it would hold its Marketweight recommendation for rating the external debt of Bahrain, which is priced in a downtrend after the downgrade.
Despite Bahraini debt rating downgrade, it benefits from its neighbor Saudi Arabia which reduces the expected volatility in the performance of those debts, according the research note.
Moody's downgraded Bahrain's long-term credit rating from Baa3 to BA1 with a negative outlook.
The agency also downgraded Bahrain’s bonds in foreign currencies from BAA1 to BAA2.
