Moody's upgrades #Oman, maintains positive outlook

Moody's upgrades Oman, maintains positive outlook

Moody's Investors Service has upgraded Oman's ratings and maintained the positive outlook on the improvement in the country's fiscal surplus as well as its spending restraint.

It upgraded the Government of Oman's issuer and long-term senior unsecured ratings to Ba2 from Ba3 and upgraded the government's senior unsecured medium-term note program rating to (P)Ba2 from (P)Ba3.

"The upgrade reflects the improvements in Oman's debt burden and debt affordability metrics during 2022, mainly as a result of the large oil and gas revenue windfall, which increase the sovereign's resilience to potential future shocks," Moody's said in a report on Monday.

Importantly, the strengthening of the fiscal metrics was supported by the government's spending restraint and its decision to use the fiscal surplus and previously accumulated fiscal buffers to pay down debt, which in Moody's view demonstrates an improving track record of fiscal policy effectiveness and governance strength.