Fitch Upgrades Energy Development Oman to Investment-Grade BBB-: What This Means for Investors and Business Growth in Oman
Muscat: Fitch Ratings has upgraded Energy Development Oman’s (EDO) credit rating to investment grade at ‘BBB-‘ with a stable outlook, following a similar upgrade of the Sultanate of Oman’s sovereign credit rating.
In its report, Fitch confirmed EDO’s standalone credit profile at ‘bbb+’, highlighting the company’s extensive integrated operations in the oil and gas sectors. The rating reflects the stability of EDO’s cash flows, supported by long-term gas sales contracts, resilient government revenue streams, a prudent dividend policy, and manageable debt levels.
With this upgrade, EDO joins a select group of companies with investment-grade status from both Fitch and Standard & Poor’s, the latter having raised EDO’s rating to ‘BBB-‘ in September 2024.
This dual investment-grade rating is a testament to EDO’s improved financial metrics and solid financial health. It is expected to expand the company’s investor base, enable access to capital on more favorable terms, and support funding for ongoing operations and future growth initiatives. This further reinforces EDO’s key role in advancing Oman’s strategic energy development goals.
Sultan bin Ali al Maamari, Chief Financial Officer of Energy Development Oman, commented, “Achieving an investment-grade rating from two leading international agencies is a pivotal milestone. It improves our access to global capital markets with competitive financing and strengthens our standing as a trusted partner for investors.”
He added, “Fitch’s upgrades for both the nation and EDO reflect positive confidence in our financial and operational outlook. Since its founding, EDO has played a vital role in building a resilient, commercially sustainable national energy framework. Through efficient operations, disciplined investment, and vertical integration across the value chain, we have contributed to increased production, enhanced energy security, and the creation of sustained long-term economic value for the Sultanate of Oman.”
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The upgrade of Energy Development Oman (EDO) to investment-grade status by Fitch signals a strengthened financial foundation and enhanced creditworthiness, positioning it as a more attractive option for global investors. For businesses and investors in Oman, this development creates opportunities to leverage more competitive financing options and supports greater confidence in the country’s energy sector stability. Smart investors and entrepreneurs should now consider the rising potential in Oman’s integrated energy market, backed by robust government and corporate financial health, as a strategic growth avenue.
