Oman's Sovereign Ratings Upgraded with Stable Outlook

Oman, 11 March, 2024 :  Oman's sovereign ratings were upgraded by Capital Intelligence Ratings (CI Ratings) to 'BB+' from 'BB', with a stable outlook. The upgrade reflects declining government debt, expected fiscal and external surpluses, and sustained reform momentum. Prudent fiscal and debt management policies, coupled with structural reforms outlined in Oman Vision 2040, contribute to the positive outlook.

In 2023, Oman posted a 5.2% GDP surplus, with central government debt decreasing to 36.8% of GDP. Debt repayment strategies, including buybacks and prepayments, improved the debt structure. The government aims to reduce its economic footprint through divestment programs.

Oman's current account surplus remained strong at 5.1% of GDP in 2023, with high reserve adequacy and external liquidity. Economic growth softened in 2023 due to voluntary hydrocarbon production cuts but is expected to rebound, supported by FDI and infrastructure projects.

The Omani banking sector remains relatively sound, with good capital buffers and declining reliance on cross-border funding. Overall, Oman's ratings are underpinned by favorable economic indicators and ongoing reform efforts.

Source :www.timesofoman.com