Muscat – Moody’s Ratings has affirmed Oman Telecommunications Company’s (Omantel) Ba1 long-term corporate family rating (CFR), Ba1-PD probability of default rating (PDR) and ba2 Baseline Credit Assessment (BCA), while changing the outlook to positive from stable.

The ratings of the backed senior unsecured trust certificates (sukuk) issued by OTEL Sukuk Limited and the backed senior unsecured notes issued by Oztel Holdings SPC Limited were also affirmed at Ba1, with their outlooks changed to positive.

Moody’s said the rating action reflects Omantel’s growing revenue and stable earnings despite structurally intensified competition since 2022. The agency expects the company’s credit metrics to improve over the next 12-18 months to levels more consistent with a ba1 BCA.

The rating is also supported by Omantel’s good liquidity, prudent financial policy and disciplined capital spending, as well as its continued efforts to reduce leverage, Moody’s said.

‘Omantel’s financial performance remains sound despite intensified competition following the entry of a third mobile network operator in 2022,’ the agency said.

Moody’s said the positive outlook reflects its expectation that Omantel’s credit metrics will continue to improve while the company maintains a sound market position and operating and financial performance.

The agency also highlighted Omantel’s strategy of maintaining leading positions in its core segments while expanding organically into complementary digital business-to-consumer (B2C), business-to-government (B2G) and business-to-business (B2B) services, leveraging its incumbent position in Oman.