Moody’s upgrades OETC's rating from Ba3 to Ba2, outlook positive

Muscat: Moody’s Ratings has recently published a new statement on its website to reflect on the upgrade of the Oman Electricity Transmission Company’s (OETC) rating from (Ba3) to (Ba2) with a positive outlook, which reflects the positive financial performance and position of the company in the market.

Moody view OETC as a government-related issuer (GRI) whose Ba2 corporate family rating (CFR) reflects the high level of dependence and high level of support from the government of Oman. Their view is supported and influenced by OETC's strong business profile, which will remain commensurate with the rating under Price Control 6 (PC6). It also sheds light on OETC's dominant market position as the natural monopoly national transmission system operator within a supportive regulatory framework with a low business risk profile of its electricity transmission activities.

Credit ratings are an important indicator of the company’s financial health and stability. This rating upgrade reflects Moody’s view of OETC’s consistent track record of prudent financial management. The OETC’s new rating increases the confidence of different stakeholders including investors and financial institutions and improves the company's reputation at the global and regional levels, leading to secured funding plans and higher profitability.

Furthermore, Fitch Ratings has upgraded OETC’s rating from (BB) to (BB+) with a stable outlook based on the enhancement of the company’s financial performance and position in the market. The company reaffirms its commitment to enhancing its performance and attaining further achievement to contribute to the development of different sectors in the Sultanate.

It is worth mentioning that OETC, a member of the Nama Group is the only company responsible for the transmission and control of electricity in the Sultanate’s network, 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. In addition, OETC manages the interconnection lines between the Sultanate and the Gulf interconnection network with a voltage of 220 kV.