CI upgrades Oman ratings to BB+; outlook stable

CI upgrades Oman ratings to BB+; outlook stable

Muscat – Capital Intelligence (CI) Ratings has raised Oman’s Long-Term Foreign Currency Rating and Long-Term Local Currency Rating to ‘BB+’ from ‘BB’. At the same time, CI Ratings also affirmed the sultanate’s Short-Term Foreign Currency Rating and Short-Term Local Currency Rating at ‘B’. The outlook for the ratings has been revised to ‘stable’ from ‘positive’, […]Muscat – Capital Intelligence (CI) Ratings has raised Oman’s Long-Term Foreign Currency Rating and Long-Term Local Currency Rating to ‘BB+’ from ‘BB’.

At the same time, CI Ratings also affirmed the sultanate’s Short-Term Foreign Currency Rating and Short-Term Local Currency Rating at ‘B’. The outlook for the ratings has been revised to ‘stable’ from ‘positive’, CI Ratings said in its rating action statement.

As per the statement, the upgrade reflects the continued decline in gross central government debt and CI’s expectation that fiscal and external balances will remain in surplus in 2024-2025, benefiting from favourable hydrocarbon prices and sustained reform momentum.

CI noted that the improvement in Oman’s public finances is supported by prudent fiscal and debt management policies.

‘The ratings are also supported by Oman’s commitment to structural reforms as outlined in Oman Vision 2040, as well as the relative soundness of the banking system and CI’s expectation