Bahrain’s credit risk falls to five-month low

Bahrain’s credit risk declined to the lowest level in five months on optimism the nation’s neighbours will soon come to the island-state’s rescue with an aid package.

The cost of insuring Bahrain’s debt against default fell 34 basis points last week on relief that Saudi Arabia, the UAE and Kuwait were said to be considering a $10 billion (Dh36.7 billion) plan. The contracts closed at 307 basis points on Friday, the lowest since May when concern over the country’s finances spurred a sell-off of Bahraini assets.