Moody's downgraded Oman's sovereign rating to Ba3 from Ba2, saying that the Sultanate would likely not be able to offset its lost revenue due to lower oil prices and avoid weaknesses in its debt sustainability measures.
The agency also changed its view of Oman from stable to negative, due to risks related to its liquidity and exposure to external risks.
Moody's said that lower mid-term oil prices would severely increase Oman’s debt and undermine its debt sustainability.
Oman is one of the weakest economies in the oil-rich Gulf region and is counting on borrowing to offset the impact of declining crude revenues.
The general isolation measures imposed by countries to limit the spread of the new coronavirus weakened demand for oil.
