Stating that the said situations caused a deep shock in oil prices, Moody’s warned that this may weaken the credit profiles of oil exporting countries.
Underlining that Russia is in a better condition compared to other oil exporting countries thanks to its foreign exchange reserves and floating exchange system, Moody’s will have an economic contraction in 2020, if there is no increase in oil production in Russia, Kazakhstan, Trinidad, Tobago, Nigeria and Gabon, Oman. He predicted that it will be 4-8 percent in Kuwait, Azerbaijan, Saudi Arabia, Republic of Congo and Bahrain.
It is stated that the expectation is over 10 percent in Iraq, while Oman, Bahrain, Iraq and Angola are among the most fragile countries.
It was emphasized that the strong financial situation of Russia, Qatar, Azerbaijan, Kazakhstan and Saudi Arabia before the sudden fall in oil prices buffered the pressure on the countries, while Qatar, the UAE and, if not as much, of the resistant balance sheets of Kuwait, Azerbaijan, Kazakhstan and Saudi Arabia. It was pointed out that it would support these countries in the crisis environment.