(MENAFN - Muscat Daily) Omantel, the leading telecommunications service provider in the sultanate, continues to be rated BBB/A-2 by Standard and Poor's (S&P) and A3 by Moody's.
In 2013, Standard and Poor's had assigned a first-time rating of BBB/A-2 and Moody's had assigned a first-time rating of A3.
According to Standard and Poor's, the ratings continue to reflect Omantel's strong financial ratios and its strong competitive position in Oman's fixed line and mobile telephony markets, solid operating performance, good profitability, strong net cash position and credit metrics.
According to Moody's, ''The A3 rating combines Omantel's fundamental credit quality, strong financial profile, which is reflected by the company's solid free cash flow generation, despite its high capital expenditures for network upgrades.''
''The rating is also driven by our expectation that the company will maintain a conservative leverage profile, with debt/ EBITDA not exceeding 1.5xs. In addition, the rating reflects the high barriers of entry to the Omani telecom market, given the country's large territory relative to its population, which acts as a deterrent to potential entrants into the market,'' said Moody's.
Talal Said al Mamari, the CEO of Omantel, said ''We are pleased that both Standard and Poor's and Moody's continue their high ratings for Omantel. Their rating speaks volumes and affirms 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.''
Omantel's high financial ratings reflects the sustainable financial strength and performance of the company and follows many international awards and recognitions received by the company in previous years, said a press release on Wednesday.
The most recent awards bagged by the company include the Best Company for Investor Relations in Oman for three years by Annual Middle East Investor Relations, and by the Asian Business Leaders Forum (ABLF) for best business practi