Oman’s Sovereign Ratings Affirmed; Outlook Remains Negative

Ref: OM20CRA00-03 2 1 August 20 20

Oman’s Sovereign Ratings Affirmed; Outlook Remains Negative

Rating Action

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has affirmed Oman’s Long-Term Foreign Currency Rating (LT FCR) and Long-Term Local Currency Rating (LT LCR) at ‘BB + ’ . T he sovereign’s Short-Term Foreign Currency Rating (ST FCR ) and Short-Term Local Currency Rating ( ST LCR ) have also been affirmed at ‘B’ . The Outlook for all ratings remains Negative.

Rating Rationale

The ratings are supported by the country’s modest short-term fiscal and external buffers, a relatively 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 very large fiscal and external pressures , the government’s reliance on external borrowing, a sharp weakening of economic growth , a s well as…