S&P boosts EDO ratings to BBB-; outlook remains stable

S&P Global Ratings recently upgraded the long-term issuer credit rating and issue ratings of Energy Development Oman (EDO) to BBB- from BB+, with a stable outlook. This follows a similar upgrade of Oman’s sovereign ratings, reflecting the government’s strengthening balance sheet and faster external deleveraging of state-owned enterprises.

EDO’s close ties with the government, as the largest oil and gas producer in Oman, influenced the rating alignment. S&P noted EDO’s vital role for the government and the high default correlation due to hydrocarbon revenue concentration. The stable outlook is based on EDO’s leading position in Oman’s oil and gas sector, with expectations of continued profitability even in a low oil price environment.

Established in 2020, EDO is wholly owned by the Omani government and holds key oil and gas concessions. The recent rating upgrade underscores EDO’s significance in supporting Oman’s energy sector and economic development.