The Sultanate will not be able to compensate for the lost revenues due to the decline in oil prices and to avoid weakness in the measures of Its ability to afford debt.
Moody's clarified that lowering the outlook for the Sultanate of Oman came due to risks related to its liquidity and exposure to external risks.
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.
Moody's said that lower medium-term oil prices would severely increase Oman’s debt and undermine its debt sustainability.
The agency stated that measures to control public financial conditions announced by Oman recently to compensate for lost oil revenues will not be sufficient to reduce the Sultanate's debts.
The general isolation measures imposed by countries to limit the spread of the Corona virus have weakened demand for oil, while prices faltered more after Saudi Arabia and Russia threatened in March to dump the market with more Oil.
