S and P Lifts Oman’s Rating to BBB- with Stable Outlook

Standard and Poor's (S and P) has upgraded Omans credit rating to BBB- from BB+, with a stable outlook, citing improved financial performance. The BBB- rating marks the first level of investment-grade creditworthiness, signaling a safe investment environment. Oman returns to this rating category after nearly seven years (since 2017), following the impact of the global oil price drop and the COVID-19 pandemic. It took Oman two and a half years of committed financial reforms to regain this status. S and P attributed the upgrade to Oman's continued fiscal improvements, including reforms in financial and economic sectors, government restructuring, and efforts to rebalance public finances as outlined in the medium-term financial plan. This has led to budget surpluses and a commitment to reducing public debt and improving governance in state-owned enterprises. The agency forecasted that Omans public budget would see moderate surpluses of 1.9 percent from 2024 to 2027, assuming an average Brent crude price of $ 80 per barrel during 2025-2027. This will enable the government to continue lowering its debt and building financial reserves. Real GDP is expected to grow by 2 percent annually over the same period, supported by rising oil production and non-oil sector growth. S and P also expects the current account to record average surpluses of 1.2 percent of GDP during 2024-2027. Source: Qatar News Agency