Cash-Strapped Oman May Be Next Blowout After Bahrain Crisis - Bloomberg:
Bond investors rattled by Bahrain’s fiscal woes last year are bracing for the next potential crisis in the Gulf region: Oman.
The cash-strapped sultanate has been slow to implement reforms following the crash in oil prices in 2014 and is seeking to tap the debt market for a fourth year. Its budget deficit is among the largest of all the sovereigns tracked by Fitch Ratings, which downgraded its debt to junk in December. Concerns over Oman’s dwindling buffers have also sparked a debate on whether it’ll need a bailout similar to the one that Bahrain got last year.
“Oman has the most concerning credit trends in the region,” said Abdul Kadir Hussain, the head of fixed income at Arqaam Capital, a Dubai-based investment bank. “Issuance needs are high.”
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