Fitch revises Oman view to negative

Fitch Ratings said it revised Oman's outlook to negative from stable and affirmed the sovereign's long term foreign- and local-currency issuer default ratings at BBB.

The issue ratings on Oman's senior unsecured foreign-currency bonds and on the sukuk trust certificates issued by Oman Sovereign Sukuk SAOC were also affirmed at BBB.

The country ceiling was affirmed at A- and the short-term foreign- and local-currency issuer default ratings at F2.

Fitch said Oman's fiscal deficit widened to 21.4% of GDP in 2016, the highest of any Fitch-rated sovereign, after 16.6% in 2015.

Although government spending fell nearly 6% from 2015, it was still 8% above budget against a fall in revenue of 17%. High defense spending and the policy of completing infrastructure projects thwarted the government's efforts to achieve the much sharper spending adjustment outlined in the 2016 budget, the agency added.

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