Oman Gets Rating Boost, As It Tries To Make The Most Of Oil Windfall

Oman Gets Rating Boost, As It Tries To Make The Most Of Oil Windfall

Fitch Ratings upgraded Oman's long-term foreign currency issuer default rating on August 15, from BB-to BB, with a stable outlook. It is a further sign of how Middle East oil producers are profiting from the spike in oil prices this year, driven by Russia's invasion of Ukraine in February. Helped by the same trends, the Saudi economy is set to expand to more than a trillion dollars in value this year. Oman is a far smaller economy, but Fitch pointed to "significant improvements" in the sultanate's fiscal metrics this year, with higher oil revenues underpinning budget surpluses and prompting a sharp fall in the ratio of government debt to GDP. The ratings agency is forecasting a budget surplus of 5. 5% of GDP in 2022 and 3. 4% in 2023 – after eight straight years of deficits. The trend across this year and next year comes despite Fitch pencilling in a decline in average oil prices from $105 a barrel this year to $85 next year. Oman's situation is also helped by a gradual ramping up of its crude oil and condensate output to an expected high of 1. 1 million barrels a day over the period. The Omani government