Muscat – Following the upgrade of Oman’s credit rating by several international agencies to ‘stable’ outlook, experts are attributing it to the country’s commitment to fiscal performance control procedures, initiatives in line with the Medium-Term Fiscal Plan (2020-2024), and higher oil prices that improved economic and financial indicators.

Fitch raised Oman’s credit rating to ‘BB’ on Tuesday. Earlier, Standard & Poors amended its credit rating to ‘BB-, with a stable outlook’ and Moody’s from ‘negative’ to ‘stable’.

Hon Dr Said Mubarak al Mahrami, Member of State Council and professor of finance in Sultan Qaboos University’s College of Economy and Political Sciences, said, “The reasons behind Fitch raising Oman’s credit rating include the government’s sincere desire to cut general debt.”

He attributed the improvement in the rating also to the sultanate’s “serious abidance” to the Medium-Term Fiscal Plan and high revenues from oil and gas prices.

“I hope Oman’s next credit rating will be an investment-based one,” he added.

The direct factors that prompted Fitch’s action were the performance of fiscal control measures undertaken within the context of the Medium-Term Fiscal Plan, ability to ease external borrowing pressure, sustained efforts to reform general finance, and a sharp fall in general debt owing to high oil prices.

Dr Mohammed Humaid al Wardi, an academic and economist, echoed a similar view, noting that Oman’s credit rating upgrade is a result of the government’s commitment to the Medium-Term Fiscal Plan aimed at achieving financial sustainability.

“The upgrade reasons include Omani economy’s ability to rebound, realise good performance in accelerating the execution of development projects, enhancing factors that furnish an attractive investment environment and reassure investors, the country’s ability to stay firm on general debt rectification course and shrink external borrowing,” Wardi said.