Moody's Rating Agency downgraded the rating of the Sultanate of Oman to BA2, with changing the country’s outlook to stable.
The agency announced that it had lowered the Sultanate’s rating to BA2 from BA1, indicating that the main driver for lowering the Sultanate’s rating was the decline in financial strength, which appears in higher government debt, and weaker measures to bear the debt burden more than Moody's expectations.
Moody's anticipated the government of Oman to announce and start implementing a medium-term control program in the next few months.
The agency also revealed that the stable outlook is due to the fact that the Sultanate's credit rating standards are robust in the face of medium negative financial shocks and from oil prices at the BA2 rating level. The Moody's report showed that expectations over the next few years are coupled with measures of the Sultanate of Oman's ability to bear the government debt burden.
Source (CNBC Arabic Website, Edited)
