S&P places Oman on watch

Standard & Poor's said it placed an A/A-1 long-term and short-term local- and foreign-currency ratings on the Sultanate of Oman on CreditWatch with negative implications.

The agency said it left Oman's AA- transfer and convertibility assessment unchanged. S&P said it does not believe recent events have affected the likelihood of the sovereign restricting private-sector access to foreign-exchange reserves needed for debt servicing.

The agency also said it placed the A ratings on Oman Power and Water Procurement Co. SAOC on CreditWatch negative, given that its ratings are equalized with those of the sovereign.

The watch negative placement reflects the current social unrest in the country and the possible repercussions that regional conflicts could increase political risks in Oman, S&P said.

As recent events in the region have shown, political risk from popular discontent can mount very quickly and can undermine political stability, the agency added.

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