Standard & Poor's has removed Bahrain and Oman from negative credit watch as the political climate in both countries continues to improve.
Bahrain's long and short-term local and foreign currency sovereign credit ratings were affirmed at "BBB/A-3" with negative implications, S&P said.
It also affirmed Oman's "A/A-1" long and short-term local and foreign currency ratings.
About Bahrain, S&P said: "We are removing the ratings from CreditWatch because of the diminished near-term political tensions and our expectation that increased public spending will lift economic growth next year, while fiscal implications will be buffered by the GCC support package."
It said Oman had also benefited from an easing of political pressures. "Aside from an isolated killing in Sohar, the protests were largely peaceful, and the quick response of Sultan Qaboos bin Said Al Said to protester demands appears to have eased tensions," S&P said.
Both nations were placed on negative credit watch in March.
Bahrain has been trying to rebuild its image as a financial and business centre after protests erupted in February. After some businesses relocated staff elsewhere in the Gulf, the kingdom has been keen to ensure that such arrangements do not become permanent.
Protests in Oman this year prompted Sultan Qaboos to commit to a US$2.6 billion (Dh9.55bn) spending package in April. Plans to generate 50,000 new jobs were also unveiled.
Saudi Arabia, the UAE, Qatar and Kuwait in March set up a fund to provide $10bn each to Bahrain and Oman.
S&P said it had also ended its negative credit watch on the Bahraini central bank; Bahrain Mumtalakat Holding, the sovereign wealth fund; and Oman Power and Water Procurement.
The economic outlook for both countries this year appears weaker as a result of the unrest.
Barclays Capital has lowered its forecast of Bahrain's economic growth from 4.3 per cent to 1.4 per cent. It lowered its estimate of Oman's economic growth to 4.5 per cent from 5.2 per cent.
Moody's Investors Service in May downgraded Bahrain's sovereign credit rating to "Baa1" from "A3", citing political turmoil and fundamental weaknesses in the banking industry.