OETC’s partial privatisation is credit positive, says Moody’s

Moody’s Investors Service has said that the entry of China’s State Grid International Development Ltd (SGID) as a long-term partner in Oman Electricity Transmission Company (OETC) is credit positive for OETC.

Last week, SGID, a whollyowned subsidiary of State Grid Corporation of China, signed agreements with Nama Holding to acquire a 49 per cent stake in OETC.

In a report released on Thursday, Moody’s said it expects the solid operational record and technical expertise of State Grid International Development would improve Oman Electricity Transmission Company’s operational and capital spending efficiencies as well as improve the company’s financial performance over time, according to an

Oman News Agency report.

‘State Grid International Development has a proven track record in all fields of asset operation, technical expertise in high smart grid technologies, and setting up and operating and managing mega networks. It has expertise in the management of international investments with the strength of its financial position,’ Moody’s said.

Moody’s praised the regulatory environment enjoyed by the electricity sector in the sultanate, describing it as a transparent and stimulating environment to invest. The ratings agency’s report focused on the envisaged role of this deal in promoting efforts of economic diversification in the sultanate away from oil.