Fitch Downgrades Credit Ratings of Several Omani Banks and Companies amidst High Government Debt Levels

Fitch Ratings (Fitch) has downgraded the credit ratings of several Omani banks and companies, after downgrading Oman’s sovereign ratings earlier in August 2020, according to a statement released recently. Oman is burdened by high debt levels, and is one of the weakest economies in the Gulf region, making it more susceptible to fluctuating oil prices than its neighbours.

HSBC Bank Oman, Ahli Bank and Bank Muscat were downgraded by one notch and assigned a Negative Outlook by Fitch, due to the higher risk of the Government of Oman becoming involved in the country’s banking system given its weak external finances, as well as the economic impact of the COVID-19 pandemic and plummeting oil prices, which would inc...