Fitch upgrades Omantel’s credit rating, citing high oil prices, reforms
The leading Omani telecommunications company has grown its customer base and agreed to sell its towers to a British firm, but a new cell service provider in the Gulf state could provide some competition.
Oman’s state-owned telecommunications company, Omantel, received a credit rating upgrade from Fitch Ratings today.
The New York-based credit rating agency upgraded Omantel to “Stable” from its previous outlook of “Negative,” according to a press release.
Fitch said that Oman’s fiscal health improved for a variety of reasons. Omantel is 51% owned by the Omani government, and high oil prices have resulted in more government revenue. Like other Gulf states, Oman bases its budget largely on proceeds from oil sales.
Oil prices plummeted in 2020 at the start of the COVID-19 pandemic, but coordination between major oil producers resulted in price increases throughout 2021. Prices went up again last week when Russia invaded Ukraine.
