Fitch affirms OETC at 'BB+’, outlook stable

Business Wednesday 08/February/2023 15:44 PM
By: Times News Service
Fitch affirms OETC at 'BB+’, outlook stable

Muscat: Fitch Ratings has published a new statement on its website highlighting the affirmation of the Oman Electricity Transmission Company’s (OETC) rating of “BB+”, and the outlook is stable.

Fitch assesses the Standalone Credit Profile (SCP) at 'BB+'. Their view is supported by OETC's strong business profile, which will remain commensurate with the rating under Price Control 6 (PC6). The SCP reflects OETC's dominant market position as the natural monopoly national transmission system operator within a supportive regulatory framework, stable earnings profile and EBITDA fully generated from regulated electricity efficient operation.

Fitch stated that it does not expect the restructuring of the distribution companies, which was announced by the Oman Investment Authority in January 2022, to have an impact on OETC's operations over the medium term.

Eng. Saleh Al Rumhi, OETC’s CEO acknowledged the efforts made by the company's employees and the plans for the implementation of national projects. He also stated, “This rating is a strong incentive for the company and the future investments that the company includes in its plans. It also increases the confidence of current and independent investors and improves the company's reputation at the global and regional levels.”

He added, “OETC management assures its aim to reach higher level ranking as per its future strategic plans and to contribute in achieving the goals of the "Oman 2040 Vision" related to the energy and renewable energy sector.”

It is worth mentioning that OETC is the only company responsible for the transmission and control of electricity in the northern Sultanate’s network and also in the Governorate of Dhofar, where electricity is transferred from production stations to distributed load centres in all governorates of the Sultanate, and the transmission network operates at a voltage of 132 kV and above, to cover most of the governorates of the Sultanate, whether in the north or the south. OETC also manages the interconnection lines between the Sultanate and the Gulf interconnection network with a voltage of 220 kV.