Ratings agency Standard Poor’s said a lack of certainty around government measures to counter falling oil prices contributed to its affirmation of a ‘BBB-/A-3’ rating.

The agency expected the gulf state to implement fiscal consolidation measures in 2015 beyond, but said the political climate was “delicate”.

“The outlook is still negative, reflecting our view of Bahrain’s weakening fiscal profile and ongoing uncertainties around the extent and implementation of a sustainable response from the government,” the agency said.

SP said fiscal metrics will be adversely affected over the next three years due to a pronounced reduction in revenues relating to the fall in oil prices. This trend influenced SP’s downgrade in its last review.

The agency said a lack of certainty as to how the government would respond to this price shift contributed to its weak profile.

While measures had been developed to relieve the pressure, SP was concerned they would not be formally included in the nation’s budget.

“Carrying out measures that both reduce and re-direct social expenditures that were initially designed to placate Bahrain’s polarised society is politically sensitive and could face delays,” it said.

Last year the nation derived about 65% of its fiscal revenues from crude oil receipts.

SP forecast real GDP to slow over 2015 as regional demand decreases, but that growth will remain positive at about 2% over 2015-2018.