Oman’s Sovereign Ratings Lowered; Outlook Remains Negative

Ref: OM20CRA00-02 2 9 April 20 20

Oman’s Sovereign Ratings Lowered ; Outlook Remains Negative

Rating Action

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has downgraded Oman’s Long-Term Foreign Currency Rating (LT FCR) and Long-Term Local Currency Rating (LT LCR) to ‘BB + ’ from ‘BBB- ’. At the same time, CI Ratings has lowered the sovereign’s Short-Term Foreign Currency Rating (ST FCR ) and Short-Term Local Currency Rating ( ST LCR ) to ‘B’ from ‘A3’. The Outlook for the ratings remains Negative.

Rating Rationale

The downgrade reflects a substantial increase in fiscal and external pressures on the back of the recent sharp decrease in oil prices and the spread of the coronavirus ( Covid-19 ) pandemic. The downgrade also takes into account rising external and government financing risks result ing from the recent deterioration in global investor sentiment , given the government’s…