FX.co ★ Moody's Upgrades Oman's Rating to Investment Grade

Moody's Global Ratings has upgraded Oman's long-term issuer and senior unsecured ratings from Ba1 to Baa3, citing anticipated improvements in the country's debt ratios and its resilience against potential declines in oil prices. Additionally, the agency has revised Oman's outlook from positive to stable. By the close of 2024, Oman's government debt is expected to reduce to 35.5% of GDP, a decrease from 37.5% at the end of 2023, marking a consistent positive trend since 2020. Concurrently, government spending is projected to fall below 29% of GDP in 2024, a significant drop from the average exceeding 42% seen during the 2016–2020 period. This fiscal prudence has effectively lowered Oman's breakeven oil price to under USD 70 per barrel for the 2024–2025 timeframe, compared to an average surpassing USD 84 per barrel between 2016 and 2020. Meanwhile, Standard & Poor's continues to rate Oman at BBB- with a stable outlook.