OETC’s Investment-Grade Rating from Fitch: Implications for Investors and Business Growth in Oman
Business Reporter
Muscat, April 20
The Oman Electricity Transmission Company (OETC) has achieved a significant milestone by receiving its first investment-grade credit rating. Fitch Ratings has upgraded the company to “BBB-” with a stable outlook, lifting it from the previous rating of “BB+.”
This upgrade reflects growing global confidence in OETC’s robust business model, which is supported by predictable cash flows, a transparent regulatory framework, strong institutional backing, and prudent financial management. The upgrade also highlights the company’s impressive record in operating one of the region’s most efficient electricity transmission networks.
This new rating enhances OETC’s appeal to investors, allowing for improved access to capital markets on more favorable terms. It will aid in the ongoing expansion of the national transmission grid as the company advances a series of strategic projects designed to meet increasing electricity demand and facilitate the integration of renewable energy sources, in alignment with Oman Vision 2040.
OETC emphasized that this credit rating upgrade underscores its resilience through various economic cycles and its ability to uphold strong financial metrics due to disciplined policies and a focus on sustainability. The company plays a crucial role in driving the energy transition, particularly in initiatives aimed at achieving net-zero emissions.
Eng Hisham Abdullah al Riyami, Acting Chief Executive Officer, stated that the upgrade is a testament to OETC’s dedication to operational excellence, strong governance, and financial discipline, all of which bolster its credibility among international stakeholders.
He further noted that the company will continue to implement its long-term strategy, which prioritizes innovation, digital transformation, and enhancing the resilience and efficiency of its grid to meet future demand and deliver sustainable value.
OETC is responsible for the transmission of electricity and load dispatch across Oman’s national grid, which serves all governorates. Additionally, it manages interconnections with the GCC grid at 220 kV and operates under the Nama Group framework, supporting the development of a secure, reliable, and sustainable power system in the Sultanate of Oman.
Special Analysis by Omanet | Navigate Oman’s Market
The upgrade of OETC to investment-grade status is a pivotal development for businesses in Oman, signifying enhanced investor confidence and improved access to capital. This presents opportunities for strategic investments in infrastructure and renewable energy, vital for meeting rising electricity demand. For savvy investors and entrepreneurs, now is the time to capitalize on OETC’s disciplined growth strategy and align investments with the nation’s sustainability goals outlined in Oman Vision 2040.
