Moody's lowers Oman, view to stable

Moody's Investors Service said it downgraded the long-term issuer and senior unsecured ratings of the government of Oman to Ba2 from Ba1 and changed the outlook to stable.

“The key driver for the downgrade is Oman's lower fiscal strength, evident in higher government debt and weaker debt affordability metrics than Moody's expected at the time of the previous rating action. Debt will continue to increase in the next two years, despite Moody's expectation that the government will begin in the next few months implementing a significant medium-term fiscal adjustment program to slow, and eventually arrest, the increase in the debt burden,” the agency said in a press release.

The stable outlook mirrors Moody's assessment that Oman's credit metrics are resilient to moderately negative fiscal and oil price shocks at the Ba2 rating level. The outlook also considers account balanced risks around the implementation of the fiscal adjustment program.

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