S&P downgrades Oman

S&P said it lowered its long-term foreign and local currency sovereign ratings on Oman to BB- from BB. The outlook is negative.

S&P also affirmed its short-term ratings at B.

In addition, S&P revised its transfer and convertibility assessment on Oman to BB from BB+.

“The sharp drop in oil prices in 2020 will intensify Oman's fiscal and external pressures, leading to a faster deterioration in the government's balance sheet, which has considerably weaker buffers than during the 2014-2015 oil price shock,” S&P said in a news release.

“Large upcoming external debt maturities in 2021-2022, along with high fiscal deficits, could raise funding pressures and borrowing costs.”

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