Fitch upgrades EDO to investment-grade BBB-

Muscat: Fitch Ratings has upgraded the credit rating of Energy Development Oman (EDO) to investment grade at 'BBB-', assigning a stable outlook. This action follows the agency's recent upgrade of the Sultanate of Oman's sovereign credit rating to the same level.

In its report, Fitch affirmed the company's standalone credit profile at 'bbb+'. The agency based its assessment on the scale of EDO’s integrated operations across the oil and gas sectors, the stability of its cash flows underpinned by long-term gas sales contracts, resilient government revenue streams, a prudent dividend policy and manageable debt levels.

With this rating action, EDO becomes one of the few companies to hold investment-grade status from both Fitch and Standard & Poor's. The latter agency upgraded EDO to 'BBB-' in September 2024.

This achievement underscores the company's improved financial metrics and robust financial health. The investment-grade rating is expected to broaden EDO's investor base, facilitate access to capital on more competitive terms, and support the financing of both ongoing operations and future growth initiatives. This strengthens the company's pivotal role in advancing the Sultanate of Oman's strategic energy development objectives.

Sultan bin Ali al Maamari, Chief Financial Officer of Energy Development Oman, stated, 'Achieving an investment-grade rating from two leading international agencies is a pivotal milestone. It enhances our ability to access global capital markets with competitive financing and solidifies our position as a reliable partner for investors.'

He added, 'Fitch's upgrades for both the nation and EDO reflect a positive outlook for our financial and operational trajectory. Since its inception, EDO has been instrumental in building a resilient and commercially sustainable national energy framework. Through efficient operations, disciplined investment, and vertical integration across the value chain, we have contributed to increased production, enhanced energy security and the generation of sustained long-term economic value for the Sultanate of Oman.'