S&P has upgraded Oman’s foreign and local currency sovereign credit ratings from “B+” to “BB-“ with a stable outlook, citing the country’s improved fiscal and debt trajectory. 

The ratings agency said Oman’s outlook has improved on the back of higher oil prices, rising hydrocarbon production and government’s fiscal reform programme. 

The country’s net debt is now forecast to reach 12 percent of its gross domestic product (GDP) in 2025, a huge improvement from S&P’s previous forecast of above 30 percent. 

“The stable outlook balances the significant improvement in the government’s balance sheet over the next three years against higher medium-term fiscal pressure because we assume oil prices will dip from current highs,” S&P said. 

The ratings agency noted that the Omani economy remains sensitive to movements in oil prices. Brent oil price is expected to average $85 per barrel for 2022 and fall to $70 and $55 per barrel in 2023 and 2024, respectively. 

(Writing by Cleofe Maceda; editing by Seban Scaria )