Moody’s downgrades Oman

Moody’s Investors Service said it downgraded the government of Oman’s issuer and senior unsecured ratings to Ba3 from Ba2 and changed the outlook on the issuer rating to negative.

This action concludes the review for downgrade started on March 30, the agency said.

“The downgrade reflects the conclusion that in a lower oil price environment, which Moody’s now assumes will persist into the medium term, the government will unlikely be able to significantly offset the oil revenue loss and avoid a large and durable deterioration in its debt and debt affordability metrics or erosion of its fiscal and foreign currency buffers,” Moody’s said in a press release.

The outlook captures liquidity and external vulnerability risks related to the government’s large financing requirements and diminishing external buffers, which Moody’s said it expects in the next few years.

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