The agency clarified that Gulf bank ratings are largely based on expectations of sovereign support, noting that the sovereign ratings of GCC countries have sufficient safety margins to withstand a short-term regional conflict that does not escalate significantly. This is especially true given that most of these countries have stable ratings, high liquidity, and capital that support their creditworthiness. They also possess substantial financial assets that can absorb shocks in the oil and gas sector. According to 'Fitch', the banking systems of Gulf Cooperation Council countries have strong buffers that enable them to face immediate credit risks arising from the regional escalation that followed the attacks by Israel and the United States on Iran on February 28.
