S&P downgrades Omantel

S&P said it lowered the long-term corporate credit rating on Oman Telecommunications Co. (Omantel) to BB from BB+ and affirmed the B short-term corporate credit rating.

The outlook is stable.

The agency said the action follows a similar action on Oman.

“The rating on Omantel is now constrained at the BB level mainly to reflect our view that the government can influence the company's financial policy and strategy, as well as industry regulation or taxation,” S&P said in a news release.

“As a result, we consider that Omantel is not sufficiently protected from extraordinary negative government intervention in times of stress.”

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