MUSCAT: S&P Global, the world’s foremost provider of credit ratings and financial analytics, announced on Friday that it has revised Oman's outlook to positive, while affirming its ratings at "BB".
Welcoming the latest outlook statement by S&P, Omani economic expert Mohammed al Mudhiani said: “The optimistic outlook highlights Oman’s adaptability to anticipated future oil market fluctuations.” Speaking to the Observer, Al Mudhiani underlined the importance of the positive credit rating to Oman’s efforts to tap international debt markets at competitive costs. “The credit rating plays a critical role in determining loan interest rates - the cost of interest is influenced by several factors, one of which is the credit rating.”
According to the economist, the improved rating will enable Oman to benefit from reduced interest rates through refinancing. “The ongoing progress will contribute to lowering interest rates on specific loans. Furthermore, due to the Sultanate's continuous improvement and exceptional management, it has saved more than RO 380 million and RO 127 million during the previous year,” he said.
The New York-based international agency cited in this regard the Sultanate of Oman’s continuously improving fiscal performance. It noted in particular the Oman government’s efforts to bolster the country’s financial performance and sustain economic development – measures that have contributed to a significant strengthening of Oman’s fiscal position far exceeding expectations. These successes, the agency further pointed, would enhance the economy’s resilience to potential shocks brought on by instability in oil markets. More on Page 13
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