Oman Business: S&P Global upgrades Oman’s credit rating – Gulf Digital News

Oman Business: S&P Global upgrades Oman’s credit rating – Gulf Digital News

S&P Global Ratings has upgraded Oman’s credit rating from “BB-”to “BB”, with stable future outlook due to improved fiscal performance of the state.

S&P also cited other indices, including improved performance in the balance of payments, measures undertaken by the government within the Medium Term Fiscal Balance Plan and a rise in oil prices as factors projecting positive outlook, coupled with the amelioration of net asset position in 2023, according to a report in Oman News Agency (ONA).

S&P pointed out that the government of Oman exerted extensive efforts in bringing down the State’s indebtedness, making use of additional financial returns. The international agency projects a decline in the public debt rate vis-à-vis the Gross Domestic Product (GDP) from 61% in 2021 to 44% in 2022.

The agency also projects a rise in Oman’s revenues over the next two years, along with sustained fiscal surplus in the State’s Budget 2024—which will enhance levels of the country’s financial reserves and achieve a 5.8% financial surplus over the GDP this year (2022).

Current account is also set to post a 5.2% surplus vis-à-vis the GDP, compared to deficits of 4.9% and 16.2% in 2021 and 2020, respectively. It said that economic growth in Oman will be