Moody’s upgrades Oman credit ratings on lower debt burden

Moody’s upgrades Oman credit ratings on lower debt burden

Moody’s Investors Service (Moody’s) upgraded Oman’s credit ratings on lower debt burden due to supportive oil prices and spending restraint. The ratings agency raised the Sultanate’s long-term issuer and long-term senior unsecured ratings to “Ba1” from “Ba2” and changed the outlook to stable from positive.  The upgrade reflects the expectation of further improvements in the […]Moody’s Investors Service (Moody’s) upgraded Oman’s credit ratings on lower debt burden due to supportive oil prices and spending restraint.

The ratings agency raised the Sultanate’s long-term issuer and long-term senior unsecured ratings to “Ba1” from “Ba2” and changed the outlook to stable from positive. 

The upgrade reflects the expectation of further improvements in the country’s debt burden and debt affordability metrics in 2023, Moody’s said in a report. 

The government’s actions come amid the oil prices windfall gains through spending restraint and prioritisation of debt repayment. 

“A lower debt burden increases the sovereign’s resilience to potential future shocks,” the ratings agency said.

The stable outlook captures the balance of risks despite the Gulf nation’s heavy economic and fiscal reliance on the hydrocarbon sector.

This exposes the government to a “potentially large and protracted deterioration” in its fiscal and external accounts in case of a decline in global oil demand and