S&P lowers Oman Electricity

Standard & Poor’s said it lowered the long-term corporate credit rating on Oman Electricity Transmission Co. to BBB from BBB+.

The agency also said it downgraded the notes issued by orphan special-purpose vehicle Lamar Funding Ltd. to BBB from BBB+.

The outlook is stable.

The downgrades follow a similar rating action on the Sultanate of Oman, S&P said.

Oman Electricity is considered a government-related entity due to its very strong link with the Omani government, S&P said.

This is reflected in the company’s monopoly status as the sole transmission system operator and its 100% state ownership through the Ministry of Finance and government-owned Electricity Holding Co. SAOC, the agency said.

The ratings also consider the company’s exposure to potential privatization risk, S&P added, although that is considered unlikely in at least the next two- to three-years.

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