Fitch affirms Oman’s ratings at ‘BB+’ with stable outlook

Fitch affirms Oman’s ratings at ‘BB+’ with stable outlook

Muscat – Fitch Ratings has affirmed Oman’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘BB+’ with a stable outlook. Oman’s ratings are supported by a higher GDP per capita, the positive impact of recent budget reforms, and a decreasing government debt-to-GDP ratio, Fitch said in a statement released on Friday. ‘High dependence on oil revenue, […]Muscat – Fitch Ratings has affirmed Oman’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘BB+’ with a stable outlook.

Oman’s ratings are supported by a higher GDP per capita, the positive impact of recent budget reforms, and a decreasing government debt-to-GDP ratio, Fitch said in a statement released on Friday.

‘High dependence on oil revenue, modest financial buffers given high exposure to volatile hydrocarbon prices, and Oman’s net external debtor position weigh on the ratings. We anticipate Oman will retain a focus on improving its non-oil fiscal balance, although the record is short,’ Fitch said.

Budget surpluses continue

Fitch projects Oman’s budget surplus to narrow to 2.2% of GDP in 2024 and 0.9% in 2025 from 3.2% in 2023, assuming a Brent oil price of $80 and $70 per barrel, respectively.

The rating agency estimates Oman’s fiscal breakeven oil price at $65-70 per barrel, indicating that Oman will continue to