Oman: Sovereign, Bank Muscat downgraded by CI

Capital Intelligence (CI) downgraded Oman’s long-term foreign and local currency ratings to A- from A and its short-term foreign and local currency ratings to A2 from A1, on 12 February. The ratings agency said the downgrade was due to a combination of a weaker-than-expected fiscal performance in the first ten months of 2015 and the likely negative consequences of a prolonged period of low oil prices. CI estimates that Oman ran a budget deficit of 17.7% of GDP in 2015; it expects the ratio to rise to 20% this year.