Six Omani power firms downgraded

May 18, 2016 12:02 pm


Following the downgrade of Oman’s sovereign rating last week, Moody’s Investors Service has lowered the issuer ratings of six power firms in the country with a stable outlook.

 

While the credit ratings agency downgraded Oman Power & Water Procur. Co. (OPWP) and Oman Electricity Transmission Company (OETC) by one notch, Majan Electricity Company (MJEC), Mazoon Electricity Company (MZEC), Muscat Electricity Distribution Company (MEDC) and Dhofar Power Company (DPC) were lowered by two notches.

 

Moody’s downgraded the sovereign rating of Oman to Baa1 from A3 on May 14 and assigned it a stable outlook. The agency justified the rating downgrade saying, “A protracted period of low oil prices will negatively affect Oman’s sovereign credit profile, beyond the level Moody’s anticipated in February, when it downgraded the rating to A3 from A1,” despite the sizable fiscal consolidation efforts undertaken by the government.

 

Issuer

Issuer Rating

Outlook

Dhofar Power Company Downgraded to Baa2 from A3 (Local Currency)

Stable

Majan Electricity Company Downgraded to Baa2 from A3 (Local Currency)

Stable

Muscat Electricity Distribution Co Downgraded to Baa2 from A3 (Local Currency)

Stable

Oman Power & Water Procurement Company Downgraded to Baa1 from A3 (Local Currency)

Downgraded to Baa1 from A3 (Foreign currency)

Stable

Oman Electricity Transmission Co Downgraded to Baa1 from A3 (Foreign Currency)

Stable

Mazoon Electricity Company Downgraded to Baa2 from A3 (Local currency)

Stable

 

 

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AMEinfo Staff
By AMEinfo Staff
AMEinfo staff members report business news and views from across the Middle East and North Africa region, and analyse global events impacting the region today.

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