Oman’s sovereign rating was cut for the second time in 2020 by S&P Global Ratings as lower crude revenue and the virus pandemic take a heavy toll on the country’s finances.
S&P took Oman a notch lower to B+, four levels into its non-investment grade scale, according to a statement Friday. The outlook on the rating is stable.
The Gulf nation had already been downgraded twice this year by both Moody’s Investors Service and Fitch Ratings. S&P’s rating is now one level lower than both Moody’s and Fitch.
“Oman’s public sector finances, as indicated by the net debt level, will materially weaken over the next three years, notwithstanding the implementation of measures to reduce fiscal deficits, S&P said. “This is partly driven by our assumptions of restrained oil price growth and slow economic recovery from the Covid-19 pandemic.”
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