Muscat: Energy Development Oman (EDO) has announced that it received a “BB” long-term credit rating, with stable outlook, from Fitch Rating firm, on par with the Sultanate of Oman sovereign rating.

Fitch also assessed EDO’s Standalone Credit Profile (SCP) and valued it investment-wise as “bbb”, which is supplemented by EDO’s volume of assets and a decline in the company’s operations’ cost.

The inaugural assessment by Fitch Ratings is another milestone in EDO’s development, as it serves to enhance the status of Oman’s hydrocarbon and alternative energy sectors as attractive spheres for investment and financing. Further, the rating increases transparency and comparability for debt investors and capital market participants active in Oman.

Commenting on the credit rating, Sultan bin Ali Al Ma’amari, CFO of EDO, said, “this assessment by Fitch is a recognition of EDO’s financial strength as well as the prudent fiscal management of the economy by the Omani government. The rating provides a firm platform to attract multiple forms of investment into the country.”

“As a landmark achievement for EDO, this is an important step towards our objective of leading the energy transition in alignment with Oman’s Vision 2040,” the CFO added.

In the report, Fitch Ratings outlined the key drivers that influenced EDO’s rating. These included the Sovereign rating, EDO’s strong financial profile, supportive scale of operations, mature oil reserves base, favorable unit economics, and improving ESG footprint. In terms of liquidity and debt structure, Fitch Ratings emphasised EDO’s strong liquidity and no short-term debt.