Corporate Debt Restructuring Masterclass

18 July 2022 (Mon), 5pm Singapore/HK time

Oman was upgraded to BB- from B+ by S&P. This comes on the back of improving fiscal and debt trajectory. S&P expects Oman to benefit from higher oil prices given its reliance hydrocarbon products alongside the government’s ongoing reforms. Reforms like new tax revenue measures such as the 5% value-added tax (VAT) from April 2021 and spending rationalization (cutting electrical subsidies etc.) since the pandemic will help the country’s finances. S&P expects Oman’s net debt-to-GDP to rise from 3% in 2022 to 12% in 2025 (forecasting Brent at $55/bbl), though it is “significantly below” previous forecasts, thereby supporting tis upgrade. Also the government’s liquid assets are expected at 47% of GDP in 2022, higher than most peers at similar rating levels. Also, thanks to better trade, Oman’s current account is set to be at a surplus of 3.4% of GDP vs. an estimated 5.6% deficit in 2021 and 11.7% in 2020.

Oman’s dollar bonds were slightly higher with its 5.375% 2027s up 0.15 points to 103, yielding 4.69%

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