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Mon 7 Mar 2011 07:14 PM

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Oman reshuffles cabinet as ratings come under pressure

S&P puts Gulf state's ratings on CreditWatch with negative implications amid protests

Oman reshuffles cabinet as ratings come under pressure
Oman protesters cheer outside the burned house of the governor.

Standard & Poor's Ratings Services on Monday said that it has placed its long-term and short-term local and foreign currency ratings for Oman on CreditWatch with negative implications.

The rating agency's move came as Oman replaced 12 ministers in a cabinet reshuffle.

Darwish Bin Ismail Al Balushi had been appointed the Gulf nation’s finance minister as the ruler reshuffled the cabinet.

Dozens of protesters staging a sit-in for a ninth day in

front of the Shoura Council, a quasi-parliamentary advisory

body, cheered the news of the reshuffle.

S&P said it had left unchanged Oman's transfer and convertibility assessment as it did not see the recent political unrest affecting the likelihood of the sovereign restricting private sector access to foreign exchange reserves needed for debt servicing.

The agency also placed the ratings on Oman Power and Water Procurement Co on CreditWatch Negative, it said in a statement.

"The CreditWatch Negative placement reflects our view that the current social unrest in the country and the possible repercussions of regional conflicts could increase political risks in Oman, which might eventually also negatively affect economic growth and public finances," S&P said.

"If tensions were to escalate in Oman, it could lead to Oman's ratings being lowered within the next three months," it added.

However, S&P said that if the government is able to address public grievances without putting too much burden on public finances and external investor confidence, then the ratings could stabilise.

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Khalid 9 years ago

First up all, GCC states has to educate / conduct study class within in their nationals that how to reduce the cost of living, give the awareness of habit to save money from their monthly income,

adopt the population controls, if they have already more than 4 childrens, then govt to open supermarket under the chamber of commerce to give the subsidy on food stuff prices along with id card ref.

reduce to take the bank loans for spending for luxurious living such as purchase vehicles, mobile phone etc