I am not surprised at all about being declined. Given its a USG program and all the problems coming from my citizenship etc... I was surprised when it took them >1 month to send the decline in. That was what made me think if it was something more than just plain citizenship....
I would be fine if their explanation was somewhere along these lines. But right now, its no explanation so I can only guess (pretty good one but still a guess...) It would be nice to be clear.