Fitch Affirms EDO Rating at BBB- with Stable Outlook

Fitch Ratings has reaffirmed Energy Development Oman's (EDO) long-term Issuer Default Rating (IDR) at BBB- with a stable outlook. This rating reflects EDO's strong operational and financial profile, which includes large-scale oil and gas operations, strong cash flow generation, and contracted gas sale prices.

The agency noted that EDO's rating is constrained by Oman's sovereign rating due to its close ties with the Omani government. Fitch assesses the precedents of support as Strong, while it assesses decision-making and oversight, preservation of government policy role, and contagion risk as Very Strong.

EDO holds participating interests in two large concessions that account for around 60% of Oman's oil and gas production. Despite the ongoing conflict in the Middle East, EDO's operations have not been materially affected as the company is not reliant on the Strait of Hormuz for exports.