Now here’s something you don’t read everyday:

The cost of insuring against a default by Bahrain surpassed Lebanon for the first time since July 2009 as officials declared a state of emergency and Fitch Ratings lowered the Persian Gulf nation’s credit rating. Bahrain’s five-year default swaps surged 44 basis points yesterday to 359.37 while contracts for Lebanon, whose debt carries a lower credit rating, climbed 4 basis points to 359.17.

Although Fitch cut Bahrain’s credit rating by two notches, it’s still three grades ahead of Lebanon:

Fitch cut the [Bahrain’s] credit rating to BBB, the second-lowest investment grade, from A-, citing increased political risk. Fitch rates Lebanon’s debt B, five steps below investment grade. […] The outlook for Bahrain’s rating is negative, indicating that more downgrades may follow.

If things continue to deteriorate on the island nation, then Bahrain might possibly catch-up (or is it catch-down) to Lebanon.

From GulfNews.com: A protester chants slogans at the Pearl roundabout in Manama, Bahrain. Police arrived in tanks, troop transport vehicles and buses before moving in on the demonstrators on March 16, 2011. | Image Credit: AP

From GulfNews.com: A protester chants slogans at the Pearl roundabout in Manama, Bahrain. Police arrived in tanks, troop transport vehicles and buses before moving in on the demonstrators on March 16, 2011. | Image Credit: AP