Standard & Poor’s Ratings Services affirmed its ‘A/A-1’ long-term and short-term local and foreign currency ratings on the Sultanate of Oman (Oman). “We removed the ratings from CreditWatch with negative implications, where they were placed on March 7, 2011. The outlook is negative. Oman’s transfer and convertibility (T&C) assessment remains AA-,” S&P in a statement said.
“We have also removed the government-supported ratings on Oman Power and Water Procurement Co. SAOC (OPWP) from CreditWatch with negative implications. The outlook on OPWP is negative,” it added.
“We have removed the ratings from CreditWatch Negative in light of immediate political pressures easing. Aside from an isolated killing in Sohar the protests were largely peaceful, and the quick response of Sultan Qaboos bin Said al-Said to protestor demands appears to have eased tensions,” it added.
“The negative outlook reflects our view of the likelihood of a downgrade if political tensions heighten due to renewed protests in response to shortfalls or delays in addressing popular demands. The ratings could also come under downward pressure if fiscal performance weakens in the absence of revenue-enhancing measures outside the oil sector,” it warned.
Alternatively, S&P added, the ratings could stabilize at their current level if political and social reforms ease tensions, and if the underpinnings of economic growth strengthen, based on tangible diversification of the economy.