(MENAFN- Muscat Daily) Telecom services provider Omantel said it has been assigned a BBB+/A-2 rating by Standard and Poor's (S&P) and a A3 rating by Moody's.
According to S&P, the ratings reflect Omantel's strong financial ratios and its strong competitive position in Oman's fixed line and mobile telephony markets, solid operating performance and high profitability.
S&P also noted that Omantel is the leader in the domestic two-player market, which in its view supports Omantel's scale and profitability at above-average levels.
According to Martin Kohlhase, Moody's vice president and senior analyst, ''Omantel was assigned the A3 rating primarily because of its strong financial profile, reflected ‘by solid free cash flow generation, and our expectation that the company will maintain a conservative leverage profile, with debt/Ebitda not exceeding 1.5x.
''The A3 rating combines Omantel's fundamental credit quality, as expressed as a baseline credit assessment of baa1; and its strong implicit support from the Oman government [A1 stable],'' Martin added.
Dr Amer al Rawas, CEO of Omantel, said, ''We are pleased to have obtained high ratings from the two of the prestigious global ratings agencies. Their ratings affirm Omantel's strong financial performance and its leadership position in the domestic market. Omantel's strategy remains focused on customer experience, growth and market leadership with an aim to enhance shareholder value.''
''It is a responsibility that we take very seriously to ensure that we always live up to the expectations of our stakeholders by applying sound business practices. We invest to provide our customers with best customers' experience and build long-term sustained value for our shareholders,'' Rawas added.
The ratings reflect the sustainable financial strength and performance of Omantel and follow many international awards and recognitions it has received in recent years, a press release said.&n
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