Oman’s Sovereign Ratings Affirmed
Content is restricted
Summary
Ref: OM19CRA00-2 9 th August 2019
Oman’s Sovereign Ratings Affirmed
RATING ACTION
Capital Intelligence Ratings (CI Ratings or CI), the international credit rating agency, today announced that it has affirmed the Long-Term Foreign Currency Rating (LT FCR) and Long-Term Local Currency Rating (LT LCR) of Oman at ‘BBB-’. The sovereign’s Short-Term Foreign Currency Rating (ST FCR) and Short-Term Local Currency Rating (ST LCR) have also been affirmed at ‘A3’. The Outlook for the ratings remains Stable.
RATING RATIONALE
Oman’s ratings reflect moderately high fiscal and external buffers, moderate – albeit increasing – public debt and a sound banking system, as well as CI’s expectation that financial support would be forthcoming from other GCC countries in the event of need.
The ratings are constrained by the high reliance on hydrocarbon export proceeds, large deficits in the current account and government budget, the…