Moody's downgraded the Sultanate of Oman to BA1 with a negative outlook. The agency also downgraded its rating of the outstanding bonds and long-term issuer bonds of the Omani government from BAA3 to BA1.
Moody's said that the country's financial standards will weaken as oil prices moderate to a lower level, indicating that investors' desire to finance the Omani deficit at relatively low cost may also be weakened.
According to Moody's, the fiscal discipline will remain largely constrained by the government's goals of economic and social stability. The Agency explained that the negative outlook reflects the view that the risk balance to the BA1 rating is declining.
Source (CNBC Arabic Website, Edited)
