S&P revises BankMuscat view to positive

S&P said it revised its outlook on BankMuscat SAOG to positive from stable and affirmed its BB+ long-term issuer credit ratings.

The outlook revision considers the improving performance of key sectors, such as tourism, transportation, mainly shipping, and utilities, together with higher economic growth, S&P said. Additionally, the government's reorganization of government-related entities, a key part of the economic reform agenda, is bettering operational efficiencies and strengthening the financial profiles of many GREs.

“We forecast GDP growth in Oman will improve to 2% per year over 2024-2027, from 1.6% in 2023. As a result, we have observed a drop in BankMuscat's stage 2 loan ratio, reaching 15% on Dec. 31, 2023, from 18.7% at year-end 2022. We expect a further decrease in stage 2 loans to below 15%,” the agency said in a press release.

S&P noted it also views Oman’s banking industry country risk assessment economic risk trend as positive.

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