Muscat: Many international agencies have upgraded the Sultanate of Oman’s credit rating with a “stable” outlook due to Oman’s commitment to fiscal performance monitoring procedures and initiatives under the Medium Term Fiscal Plan ( MTFP), rising oil prices and improving economic and financial indicators.
While Fitch upgraded Oman’s credit rating to ‘BB’, Standard & Poors changed the country’s credit rating to ‘BB-‘, with a stable outlook, as did Moody’s, from ‘negative’ to ‘stable’. “.
One of the direct factors that motivated Fitch’s action was the performance of the general finances of the Sultanate of Oman, the budgetary control measures taken within the framework of the balanced budget plan 2020-2024, an ability to mitigate external borrowing pressure, sustained efforts to reform general finances, high oil prices boosting 2022-2023 budgets, and a sharp decline in general debt.
Dr Said Mubarak Al Mahrami, a member of the State Council and professor of finance at the College of Economics and Political Science at Sultan Qaboos University, told the Omani News Agency (ONA) that the reasons for the Improvements in Oman Fitch’s credit rating include the government’s sincere desire to reduce overall debt, Oman’s serious adherence to the balanced budget plan, and high oil and gas price revenues. He hopes Oman’s next credit rating will be investment-based.
In turn, Dr. Mohammed Humaid Al Wardi, an academic and economist, echoed a similar view, noting that the improvement in Oman’s credit rating was the result of the government’s commitment to the plan. fiscal balance (aimed at achieving financial sustainability), the Omani economy’s ability to rebound, achieve good performance in accelerating the execution of development projects, strengthening factors that provide an attractive investment environment and to reassure investors of the country’s ability to remain firm on the general path of debt recovery and to reduce external borrowing.