Fitch upgraded the Sultanate of Oman's credit rating to bb with a stable outlook, while Oman's long-term foreign currency issuer (IDR) was upgraded to bb from bb-.
According to the agency, the high oil revenues will contribute to achieving a surplus in the Sultanate’s budget 2022 and 2023, while the upgrade of the rating reflects major improvements in Omani financial standards.
While oil prices are expected to decline in the medium term, the agency indicated that the rating upgrade reflects the easing of external financing pressures and the ongoing efforts to reform public finances, revealing that the financing situation in Oman is better than in previous years.
The agency noted that the medium-term funding requirements are still large and the Sultanate's external debt level is high, while the economy and financial revenues remain linked to the hydrocarbon sector despite the continuous structural adjustments to enhance diversification.
Fitch also raised its positive expectations for the recovery of tourism in the Sultanate of Oman during the current and next year, with the agency's experts predicting stronger growth for the sector during the medium-term forecast period between 2024 and 2026.
Source (Al-Arabiya.net Website, Edited)
