Mubasher: Fitch Ratings assigned a 'BBB' rating for Oman's long-term foreign and local currency issuer default ratings (IDRs) with a stable outlook, according to a recent report.

Fitch also published the country ceiling of 'A-', and short-term foreign and local currency IDRs of 'F2'.

“Oman's ratings reflect its low public and external debt, strong balance sheet and high GDP per capita, balanced against its double-digit fiscal deficit and a very hydrocarbon-dependent budget and economy,” the statement added.

“Its World Bank governance indicators are at the 'BBB' median level but are held back by low scores on voice and ccountability.”

The rating agency expects that external debt issuance and draw-downs from wealth funds to finance budget deficits will result in sovereign net foreign assets falling to 28% of GDP by 2018 from 48.5% of GDP at end-2016, the report indicated.

Fitch forecasts the government's net domestic assets will remain above 10% of GDP. At those levels, the government would still have a stronger balance sheet than most countries in the 'BBB' rating category, it added.