Oman lifted from junk status by S&P amid reforms

S&P Global Ratings has upgraded Oman’s long-term sovereign credit rating to ‘BBB-‘ from ‘BB+’, restoring the country to investment grade status. The ‘BBB’ rating, which Oman has now achieved, signifies an adequate capacity to meet financial commitments and is the lowest rung on S&P’s investment-grade scale. This upgrade reflects Oman’s commitment to deleveraging its balance sheet and advancing its structural reform agenda, according to S&P. S&P has also assigned Oman a stable outlook, balancing the benefits of fiscal reforms against the country’s vulnerability to oil price fluctuations. The upgrade underscores the impact of Oman’s reforms, including cuts to subsidies, the introduction of VAT, and the mobilisation of non-hydrocarbon revenues. Additionally, S&P raised Oman’s short-term credit rating to ‘A-3’ from ‘B’ and improved its transfer and convertibility assessment to ‘BBB’ from ‘BBB-‘. In its latest report on Oman’s fiscal standing, S&P commended the government’s ongoing efforts to diversify the economy away from hydrocarbons and attract foreign direct investment through asset sales and economic liberalisation

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