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Oman: Sovereign downgraded to junk again as reforms await

Moody’s Investors Service downgraded the sultanate’s sovereign rating from Baa3 to Ba1 on 5 March, becoming the third of the big three ratings agencies to grade Muscat’s debt as junk. Standard & Poor’s and Fitch took similar steps in May 2017 and December 2018 respectively. Explaining its decision, Moody’s said Oman’s fiscal position was expected to deteriorate further in the face of moderate oil prices and the pressure on the government to maintain spending commitments “given its social stability objectives.”

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