S&P lowers Oman Power

S&P said it lowered the long-term corporate credit rating on Oman Power and Water Procurement Co. SAOC to BB from BB+.

The outlook is stable.

The action follows a similar downgrade on the Sultanate of Oman, the agency said.

The downgrades reflect the company's very strong link to the Omani government, S&P explained.

The agency said it does not believe the company's creditworthiness can exceed Oman's creditworthiness, so the ratings are capped at the level of those on Oman.

The company is considered a government-related entity with a continued extremely high likelihood that it would receive timely and sufficient government support if faced with financial distress, S&P said.

But the downgrade of Oman indicates a weakened ability to support the company, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.