Fitch Ratings upgraded Oman’s long-term foreign currency issuer default rating from BB+ to BBB- on Monday. In turn, Muscat now has an investment grade credit rating.
Oman’s Upgrade
The agency said the decision reflects the sustained uptick in Oman’s public finances, stronger external buffers, and continued confidence in the government’s prudent fiscal management amid lower oil prices.
According to Oman, Fitch Ratings has demonstrated “solid fiscal discipline” cutting public debt to 36% of GDP in 2025. This marks a remarkable turnaround from a debt of 68% of GDP in 2020.
Oman’s Reforms: What Manama Could Learn from Muscat?
According to Justin Alexander, Director of Khaleeji Economics and GCC analyst for GlobalSource Partners, “Bahrain needs to learn from Oman, which has implemented broad fiscal balance reforms since 2020, halved its debt in relative terms, and seen a dramatic rerating back to investment grade.”
Before Oman’s reform programme launched in 2020, the country’s bond yields were higher than Bahrain. Oman’s bond yields now align with KSA.
Other Rating Improvements
Fitch Ratings is one of the last confirmations of Oman’s success in macroeconomic reform.
S&P affirmed Oman’s credit rating at BBB- with a stable outlook last year, while Moody’s Investors Service upgraded the sultanate to investment grade (Baa3) in July 2025.
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