Moody’s upgrades ratings of 5 Omani government-related entities

Moody’s upgrades ratings of 5 Omani government-related entities

Moody’s Investors Service on Thursday upgraded the corporate family ratings (CFR) of five government-related issuers (GRIs) domiciled in Oman to Ba1 from Ba2. The outlooks of all five government-related entities have changed to stable from positive.

The rating action is a direct consequence of Moody’s recent rating action on the Government of Oman where the government bond rating was upgraded to Ba1 from Ba2, the agency said in a statement.

Moody’s upgraded the ratings of Dhofar Integrated Services Company (DISC), Oman Electricity Transmission Company (OETC), Oman Power and Water Procurement Company (OPWP), Nama Electricity Distribution Company (NEDC), and Nama Electricity Supply Company (NESC).

According to Moody’s, the ratings of these five entities have been upgraded to Ba1 because of their close linkage to the government and high exposure to the domestic operating environment. The outlooks have changed to stable from positive.

‘The upgrade of the ratings reflects the close interlinkage of DISC, NEDC, NESC, OETC and OPWP with the sovereign rating because of their significant exposure to the Omani government in the form of subsidies (OETC, NEDC and OPWP being indirectly exposed),’ Moody’s noted.