Positive Outlook for Oman’s Credit Rating
Moody’s Ratings has upgraded the Government of Oman’s outlook to ‘positive’ from ‘stable,’ affirming its Ba1 long-term issuer and senior unsecured ratings. The rating agency cited the government’s improving debt metrics, supported by high oil prices and prudent fiscal management. This increase in fiscal strength could lead to a higher rating in the future.
Furthermore, Oman has successfully reduced its government debt without depleting its financial assets, enhancing its ability to withstand economic shocks. The country’s high per-capita income, moderate debt burden, and effective fiscal policies were also highlighted as factors supporting the positive rating outlook.
Moody’s mentioned that sustained improvements in Oman’s debt metrics in 2023 could lead to a further upgrade. The agency also extended the positive outlook to Oman Sovereign Sukuk Company, a special-purpose vehicle backed by the Government of Oman.
Last year, Moody’s upgraded Oman’s credit ratings twice due to lower debt levels and fiscal reforms. The recent positive outlook signifies continued economic resilience and progress for the sultanate.
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