Font Size

- Aa +

Wed 6 Mar 2019 09:09 AM

Font Size

- Aa +

Moody's cuts Oman rating over lack of meaningful fiscal reforms

Moody's forecasts Oman's fiscal deficit will remain high, ranging from 7% to 11% of GDP in the next three years

Moody's cuts Oman rating over lack of meaningful fiscal reforms
Moody’s is the last of the three major ratings agencies to grade Oman to non-investment grade.

Moody’s Investors Service cut Oman’s rating to junk amid scepticism the nation’s weakening fiscal metrics won’t improve anytime soon.

The rating company lowered the country by one notch to Ba1, one level below investment grade, with a negative outlook. Moody’s forecasts Oman’s fiscal deficit will remain high, ranging from 7 percent to 11 percent of gross domestic product in the next three years.

The downgrade reflects Moody’s view “that prospects for new meaningful fiscal reforms are limited, to a greater extent than the rating agency had previously assessed,” according to a statement.

“This view is underscored by delays of measures that were announced in early 2018 and that Moody’s expected would be implemented during 2018-19.”

Moody’s is the last of the three major ratings agencies to grade Oman to non-investment grade. S&P Global Ratings has Oman at BB, two levels below investment grade, and Fitch Ratings has it at one level below investment grade.