Oman – Sovereign Ratings Affirmed; Outlook Remains Positive

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has affirmed Oman’s Long-Term Foreign Currency Rating (LT FCR) and LT Local Currency Rating (LT LCR) at ‘BBB-’. At the same time, CI Ratings has affirmed the sovereign’s Short-Term (ST) FCR and ST LCR at ‘A3’. The Outlook on the ratings remains Positive.

Rating Drivers

The ratings reflect Oman’s improving capacity to absorb external shocks, including gradually increasing resilience to oil price volatility. This is supported by increasing foreign exchange reserves as well as accelerated reform implementation under Vision 2040. Recent measures continue to reduce the state’s footprint in the economy through debt reduction, restructuring, and the partial divestment of state-owned enterprises (SOEs). In parallel, the government has enacted new legislation to deepen private sector participation in non-hydrocarbon industries, attract foreign direct investment (FDI), strengthen labour market…