Oman – Outlook Revised to Positive; Sovereign Ratings Affirmed

Ref: OM 2 4 CRA00- 0 2 6 September 2024

Oman – Outlook Revised to Positive; Sovereign Ratings Affirmed

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has revised the Outlook on Oman’s Long-Term Foreign Currency Rating (LT FCR) and LT Local Currency Rating (LT LCR) to Positive from Stable. At the same time, CI Ratings has affirmed the sovereign’s LT FCR and LT LCR at ‘BB+’, and the Short-Term (ST) FCR and ST LCR at ‘B’.

Rating Drivers

The change in the outlook reflects the faster than previously projected decline in central government debt , underpinned by ongoing fiscal consolidation measures and proactive debt management. The central government budget position has remained in surplus despite prolonged voluntary hydrocarbon production cuts, while hydrocarbon and divestment proceeds are being used to prepay, repay and buyback relatively expensive external debt. The outlook also reflects the…