Ref: OM21CRA00-01 1 9 February 20 2 1
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 ‘BB+’. At the same time, CI Ratings has affirmed the sovereign’s Short-Term Foreign Currency Rating (ST FCR) and Short-Term Local Currency Rating (ST LCR) at ‘B’. The Outlook for the ratings remains Negative.
Rating Rationale
The downgrade of the ratings and the N egative O utlook reflect a marked increase in public and external debt burdens over the past year and CI’s expectation that Oman’s public and external debt metrics will continue to deteriorate over the forecast horizon . Despite the recent rebound in hydrocarbon prices and the implementation of fiscal consolidation measures, CI’s baseline scenario…