Global credit ratings agency Fitch has revised its outlook on Oman to “positive” from “stable”, while affirming the issuer default rating (IDR) at “BB+”, citing improvement in finances.

Oman has continued to post lower debt, accumulated net sovereign assets and demonstrated fiscal prudence, the agency said on Wednesday.

Fitch expects the sultanate’s budget surplus to narrow to 0.7% of the gross domestic product (GDP) next year, followed by a 0.2% minor deficit a year after.

The government debt-to-GDP ratio is poised to trend downwards to 34% by the end of the year and 33.3% by 2026, from 37.5% at end-2023 and 68% in 2020, while external debt is likely to shrink to $26.6 billion (24% of GDP).

(Writing by Cleofe Maceda; editing by Brinda Darasha)