Oman’s Credit Strength: S&P Affirms ‘BBB-’ Rating with Stable Outlook

Oman, 4 April, 2025 : International rating agency Standard & Poor’s (S&P) has reaffirmed Oman’s long-term sovereign credit rating at ‘BBB-’ with a Stable Outlook, citing the government’s ongoing efforts to reduce public debt and improve fiscal performance.

S&P indicated that Oman’s credit rating could improve further if the government continues to manage public finances effectively, including increasing non-oil revenues and enhancing spending efficiency.

The agency had previously upgraded Oman’s rating from ‘BB+’ to ‘BBB-’ in September 2024, acknowledging the country’s progress in addressing structural challenges such as budget deficits and balance of payments issues.

S&P expects these fiscal reforms to boost GDP growth, particularly in the non-oil sector, alongside continued initiatives to diversify the economy and develop the capital market. The agency also projected Oman’s inflation to remain moderate, averaging 1.5% annually from 2025 to 2028, after reaching 1% in 2024.