Oman: S&P sovereign downgrade

Standard & Poor’s lowered its long-term foreign and local currency sovereign credit ratings on Oman from BB+ to BB on 10 November, citing large fiscal and current account deficits. It said Oman’s overspend, which is mostly being financed through external borrowing, is eroding the sultanate’s net asset position. S&P expects Oman’s external debt to exceed its liquid external assets for the first time next year, with the gap widening in subsequent years.