Oman – Sovereign Ratings Upgraded; Outlook Revised to Stable

Ref: OM 2 4 CRA00- 0 1 8 March 2024

Oman – Sovereign Ratings Upgraded; Outlook Revised to Stable

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has raised Oman’s Long-Term Foreign Currency Rating (LT FCR) and Long-Term Local Currency Rating (LT LCR) to ‘ BB+ ’ from ‘ BB ’. At the same time, CI Ratings has affirmed t he sovereign’s Short-Term FCR (ST FCR) and ST LCR at ‘ B ’. The Outlook for the ratings has been revised to Stable from Positive .

Rating Rationale

The upgrade reflects the continued decline in gross central government debt and CI’s expectation that fiscal and external balances will remain in surplus in 2024-2025 , benefitting from favourable hydrocarbon prices and sustained reform momentum . The improvement in the public finances is supported by prudent fiscal and debt management policies . The latter aim to reduce the budget’s vulnerability to fluctuations in oil prices and…