Fitch Upgrades EDO 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, assigning a stable outlook with a rating of ‘BBB-‘. This follows Fitch’s recent upgrade of the Sultanate of Oman’s sovereign credit rating to the same level.
The agency affirmed EDO’s standalone credit profile at ‘bbb+’, highlighting the company’s extensive integrated operations in the oil and gas sectors, stable cash flows supported by long-term gas sales contracts, resilient government revenue streams, prudent dividend policy, and manageable debt levels.
With this upgrade, EDO joins a select group of companies rated investment grade by both Fitch and Standard & Poor’s, which had previously upgraded EDO to ‘BBB-‘ in September 2024.
This rating advancement reflects EDO’s improved financial metrics and strong financial health. The investment-grade status is anticipated to expand EDO’s investor base, enhance its access to capital under more favorable terms, and support funding for ongoing operations and future growth initiatives. It further reinforces EDO’s critical role in advancing Oman’s strategic energy development goals.
Sultan bin Ali al Maamari, Chief Financial Officer of Energy Development Oman, commented, “Achieving investment-grade ratings from two leading international agencies is a landmark achievement. It strengthens our access to global capital markets with competitive financing and confirms our status as a dependable partner for investors.”
He added, “Fitch’s upgrades for both Oman and EDO reflect a positive financial and operational outlook. Since its establishment, EDO has been key to developing a resilient and 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 sustainable long-term economic value for the Sultanate of Oman.”
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The upgrade of Energy Development Oman (EDO) to investment grade by Fitch, alongside the sovereign upgrade, signals robust financial health and increased investor confidence in Oman’s energy sector. For businesses, this translates into greater access to capital and more competitive financing, enabling expansion and innovation. Smart investors should consider the stability and growth potential embedded in EDO’s long-term contracts and prudent financial management, which position the company as a low-risk, strategic investment aligned with Oman’s energy development goals.
