Bahrain Mirror (Reuters): The Bahrain government has cancelled a $750 million bond sale after Standard & Poor's downgraded its credit rating of the kingdom to junk status.

"The Issuer has determined to not proceed with the offering announced on 16 February 2016 following the ratings announcement by Standard & Poors on 17 February 2016," Bahrain's central bank said in an emailed statement on Thursday.

"Any future transaction will be subject to market conditions," it added without elaborating.

S&P cut Bahrain by two notches to 'BB/B' with a stable outlook late on Wednesday, citing lower oil price assumptions. Late on Tuesday, Bahrain had upsized and launched a $750 million, two-part bond reopening at the tighter end of its previous guidance.