DUBAI: Standard & Poor’s Ratings Services had lowered its ratings on two Oman-based companies, Oman Telecommunications Co. (Omantel) and Oman Power and Water Procurement Co. SAOC (OPWP). The outlooks on both companies are stable.
The rating actions reflect our view of Omantel and OPWP as government-related entities and stem from the earlier downgrade of Oman.
“The ratings reflect our continued assessment of Omantel’s stand-alone credit profile (SACP) at bbb, based on a satisfactory business risk profile and a minimal financial risk profile, and our opinion that there is a moderately high likelihood that the government of Oman would provide timely and sufficient extraordinary support to Omantel in the event of financial distress. However, because of the lowering of the sovereign credit rating, we have reduced by one notch the uplift we incorporate into the long-term rating on Omantel for this support,” S&P in a statement said.
“The long-term rating reflects our continued assessment of OPWP’s SACP at a- and our opinion that there is an almost certain likelihood that the government of Oman would provide timely and sufficient extraordinary support to OPWP in the event of financial distress. We continue to regard OPWP as having a satisfactory business risk profile and a modest financial risk profile.”