Standard and Poor's, a rating agency, on Friday downgraded Bahrain's credit rating two notches as the political situation in the country worsens.

The rating agency said it had downgraded Bahrain's long- and short-term credit rating from A- to BBB and A-2 to A-3 respectively, and placed the sovereign on credit watch with negative implications. The move places Bahrain's long-term credit rating one notch above junk bond status. Standard and Poor's also lowered the ratings on the Central Bank of