Riyadh: The Standard & Poor’s rating agency has positively raised the Sultanate of Oman’s debt outlook from stable in the hope that the Sultan’s reform plan will curb the growth of government debt in the coming years.
The credit rating of the Sultan of Oman is confirmed in “B + / B”. Standard & Poor’s downgrades Oman’s long-term sovereign credit rating from BB to B + in October 2020
“The positive outlook indicates that the Omani reform plan and higher oil prices compared to 2020 will reduce the fiscal deficit and slow the growth of net government debt over the next three years,” said a Tahabia credit analyst. Gupta. Evaluation Note.
According to Standard & Poor’s, the planned financial recovery and strong economic growth could improve Oman’s valuation over the next 12 months if financial imbalances and a reduction in net government debt share beyond its current forecast.
However, oversight over stability could be adjusted if the risks of implementing fiscal reform undermine the government’s ability to maintain a stable public fund, Gupta said.
Standard & Poor’s may change the government’s position on stabilizing external debt
Companies have now boosted the country’s external lending activity more than expected.
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