S&P revises Oman’s outlook to positive amid fiscal resilience

S&P revises Oman’s outlook to positive amid fiscal resilience

Global rating agency S&P has revised its outlook on Oman to “positive” from “stable”, driven by the government’s strong fiscal position. The revision was further supported by expectations that the economic reform programme in the sultanate would lead to faster-than-expected deleveraging in many state-owned enterprises, without dampening economic growth outcomes. This will strengthen the economy’s […]Global rating agency S&P has revised its outlook on Oman to “positive” from “stable”, driven by the government’s strong fiscal position.

The revision was further supported by expectations that the economic reform programme in the sultanate would lead to faster-than-expected deleveraging in many state-owned enterprises, without dampening economic growth outcomes. This will strengthen the economy’s resilience to adverse oil price shocks.

S&P affirmed its rating of “BB+/B” long- and short-term foreign and local currency sovereign credit ratings on Oman.

“The ratings could be raised over the next 18 months if Oman’s fiscal position strengthens further from a continued reduction in government debt and the state-owned enterprise sector’s continued deleveraging,” the ratings agency said.

The government is well placed to continue reducing external debt or accumulate assets as the budget surpluses are forecast to average 1.2 percent of GDP over 2024-2027. S&P expects the Brent oil price to average $85