Fitch rates Omantel, notes BBB-

Fitch Ratings said it assigned Oman Telecommunications Co. SAOG (Omantel) a long-term foreign-currency issuer default rating of BBB-(EXP).

The outlook is negative.

The agency also assigned a BBB-(EXP) rating to the prospective senior secured notes issued by Oztel Holdings SPC Ltd. and guaranteed by Omantel.

Omantel is rated on a standalone basis at BBB-. Fitch said the rating is capped by the sovereign (BBB-/negative) due to strong strategic and operational links with the Sultanate of Oman. This also drives the negative outlook on the rating, which would otherwise be stable.

“The company's standalone rating is anchored by the group's domestic operations, where Omantel has a leading position in both fixed and mobile segments. This enables the company to generate robust pre-dividend free cash flow that provides flexibility to invest and protect credit metrics if needed,” Fitch said in a news release.

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