S&P's Cullinan Discusses Middle East Sovereign Ratings, Oil

The video discusses the decline in ratings for GCC oil exporters due to a sharp drop in oil prices since 2015. While some countries like Oman and Bahrain faced significant downgrades, others like Abu Dhabi and Kuwait maintained their ratings. The discussion includes oil price assumptions, with a projection of $55 per barrel, and the impact of OPEC cuts and shale production. The video also covers fiscal strategies, highlighting Saudi Arabia's budget challenges and the broader commitment of GCC countries to fiscal consolidation despite rising oil prices.

Which GCC country experienced the most significant downgrade in ratings since 2015?

• Bahrain

• Kuwait

• Oman

• Saudi Arabia

What is the current oil price assumption for the foreseeable future?

• $50

• $55

• $65

• $72

What factor is believed to push oil prices back down?

• Government subsidies

• Shale production

• OPEC cuts

• Increased demand

What was the initial reaction to Saudi Arabia's fiscal consolidation program?

• Optimism

• Criticism

• Skepticism

• Indifference

What is the potential issue with Saudi Arabia's budget this year?

• Decreased foreign investment

• Increased government spending

• Overestimated oil prices

• Underestimated oil production