Moody’s adjusts Oman’s local currency and foreign currency bond and deposit ceilings

By bne IntelliNews July 24, 2013

Moody’s has adjusted its local currency country risk ceiling and the foreign currency bond and deposit ceilings for Oman, reflecting a methodological change earlier this year.

The long-term local currency bond and deposit ceiling was changed to Aa3 from Aa2. The long-term foreign currency bond ceiling was also changed to Aa3 from Aa2, while the deposit ceiling remained at A1. The ratings agency also left the short-term foreign currency bond and deposit ceilings at P-1.

The adjustment brings Oman’s local currency ceilings closer towards the sovereign bond rating of A1, which reflects the currency peg to the US dollar, the high degree of government intervention in the economy and the high dependence of the government finances and the overall economic performance on oil price movements.

Similarly, the strong foreign currency ceilings reflect Oman’s foreign exchange liquidity supported by current account surpluses and sizeable foreign exchange assets.

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