S&P upgrades #Oman to 'BB+' on firmer macroeconomic fundamentals | Reuters

S&P upgrades Oman to 'BB+' on firmer macroeconomic fundamentals | Reuters

S&P Global Ratings on Friday upgraded Oman's credit ratings, stating favourable oil sector dynamics coupled with higher non-hydrocarbon sector output to sustain real economic growth over 2023-2026.

S&P raised its long-term foreign and local currency sovereign credit ratings on Oman to "BB+" from "BB". It also upgraded its transfer and convertibility assessment to "BBB-" for the country.

Oman, a relatively small oil producer, is more sensitive than its hydrocarbon-rich Gulf neighbours to oil price swings.

"The upgrade reflects the improved resilience of the Omani economy to external shocks on the back of continued supportive oil sector prospects along with sovereign balance sheet deleveraging and broader structural reforms," S&P said in a statement.

The ratings agency now expects the country's GDP growth to average about 2% over 2023-2026 after a year of slowdown due to voluntary oil production cuts.