Oman aims to further improve its credit ratings

Oman aims to further improve its credit ratings

Muscat: Oman is expected to further improve its credit ratings and outlook through the implementation of its fiscal consolidation plan under the leadership of His Majesty Sultan Haitham bin Tarik. Higher oil prices in the world market further consolidated the gains and brought windfalls for the economy.

Top credit ratings agencies had upgraded Oman’s credit rating in 2022 and revised their outlook upward as a result of fiscal consolidation and prudent measures taken by the government.

Despite the current high oil price environment, the rating agencies however, warn of an economic crisis which will lead to a reversal in the high oil price environment, causing an adverse impact on financial and economic stability, the Ministry of Finance (MoF) said in its Guide to State’s General Budget for Fiscal Year 2023 document.

“Therefore, all credit ratings agencies assert the significance of continuing with fiscal consolidation measures for fiscal sustainability to overcome any future financial pressures,” it added.

Last year, in its report issued in November 2022, S&P Global Ratings upgraded Oman’s credit rating from “BB-” to “BB” with a stable outlook. The agency indicated significant improvements in Oman’s fiscal performance and balance of payments positions. S&P stated that Oman has exerted significant efforts to reduce