Special to WorldTribune.com

WASHINGTON — Two Gulf Cooperation Council states have dropped in ratings by a leading U.S. agency.

Standard and Poor’s lowered the outlook of Saudi Arabia from positive to stable amid the decline in crude oil prices and the boom in shale oil production in the United States. The U.S. agency also reduced the rating of Oman to negative.

“We base our outlook revision on our view that, although real economic growth remains relatively strong, we think Saudi Arabia is unlikely to achieve sufficient levels of nominal income to raise the ratings over the next two years,” Standard said on Dec. 5.

But Standard maintained its AA-/A-1+ credit ratings for Saudi Arabia, with reserves of $750 billion, for both long- and short-term foreign and local currency.

Still, the agency warned that the Saudi economy was vulnerable to a “sharp and sustained oil decline in the oil price.” Oman also maintained its A/A-1 ratings.

  As oil prices drop, so do Standard and Poor ratings for Gulf states, WorldTribune.com