BUSINESS REPORTER
MUSCAT, FEB 8
International ratings agency Fitch Ratings has upgraded Oman Electricity Transmission Company SAOC (OETC) Long-Term Issuer Default Ratings (IDR) and senior unsecured rating to 'BB' from 'BB-'. The Outlook on the IDR is Stable. The ratings have been removed from Under Criteria Observation (UCO).
The upgrade follows the implementation of Fitch's updated Parent and Subsidiary Linkage (PSL) Criteria, published on December 1, 2021, said Fitch. “Under the new criteria, we view OETC as the 'stronger subsidiary', based on its Standalone Credit Profile (SCP) of 'bb+', which is higher than the sovereign rating of Oman (BB-/ Stable). Our assessment leads to OETC being rated one notch higher than the sovereign rating (ie consolidated plus one approach),” it stated.
The Outlook change reflects a recent similar action on Oman's Long-Term Foreign Currency IDR to Stable from Negative.
OETC, a subsidiary of Nama Group, owns, operates and manages the main transmissions systems serving north and south Oman. Chinese state-owned State Grid International Development Limited has a 49 per cent stake in OETC.
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