Bahrain Central Banker Slams Rating Agencies

Rating agencies were hasty downgrading Bahrain without taking into consideration the long-term prospects and relying only on political factors, Rasheed Mohammed Al Maraj, Bahrain central bank governor, told CNBC Thursday.

Earlier this week, Moody's put Bahrain's rating outlook on review for a possible downgrade on fears that political unrest and protests will continue.

"I think the credit rating agencies took a hasty decision in terms of basing their decision on the political situation," Al Maraj said in an interview.

"The economic fundamentals of Bahrain have not changed, as a matter of fact the public finance of Bahrain has slightly improved as a result of higher oil prices," he said.

Investors need to distinguish between the countries in the Middle East, as their dynamics are different, Al Maraj said, adding that Bahrain has not seen any negative impact from the situation in the region.

"I am hoping that this thing is going to be resolved soon … I am hoping that this is of a short-term nature and it will not change our fundamentals," he said.

It is very difficult to say what the price of oil will do, as it has been moving on political, rather than fundamental reasons, Al Maraj said.

"I think what matters is that the major producers in the region have continued their commitments to make sure and ensure that there is enough supply in the markets," he said. "I hope that, once things start to clear, oil prices will settle into a reasonable level."

Bahrain's economic programs and reforms will continue, as the country's economic fundamentals have not changes, Al Maraj said.