S&P: Omantel view to negative

S&P said it revised the outlook to negative from stable on Oman Telecommunications Co. (Omantel).

The agency also said it affirmed the company’s BBB- long-term and A-3 short-term corporate credit ratings.

The action follows the recent revision of the outlook on the Sultanate of Oman to negative, S&P explained.

The ratings on Omantel are now constrained at the BBB- level based on the sovereign rating on Oman, the agency said.

This is because Omantel is considered a government-related entity, S&P said.

The company’s stand-alone credit profile is still strong at BBB, supported by a strong competitive position in Oman’s fixed-line and mobile telephony markets, solid operating performance, high profitability and net cash position, the agency said.

Somewhat offsetting this is Omantel’s fairly small scale in the global market, the evolving competitive and regulatory landscape for telecom operators in Oman and Omantel’s exposure to country risk, S&P said.

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