S&P Assigns Oman's OQ Investment-Grade Rating

S&P Global Ratings has assigned OQ, Oman’s international integrated energy group, an investment-grade rating of ‘BBB-’ on the global scale issuer credit rating, and a ‘gcAA-’ rating on the GCC regional scale, both with a stable outlook.

In its rating action statement, S&P stated that OQ benefits from vertical integration across the hydrocarbon value chain, upstream access to new blocks in Oman, leading positions in domestic refining and gas transmission, and strong backing from its sole shareholder, the Government of Oman.

S&P noted that the stable outlook reflects its expectation that OQ’s integrated business model and prudent balance sheet management through 2025–2026 will enable the company to withstand any potential impact on its credit metrics, even in a weaker market environment.

‘OQ’s business risk profile is balanced by the concentration of its assets in Oman, its medium-sized scale of operations, and its exposure to the volatility of the hydrocarbon industry,’ the agency said.

S&P acknowledged that over the past three years, OQ has significantly reduced its debt by utilising operating cash flow and proceeds from the divestment of non-core assets and stakes in subsidiaries. The agency added, ‘We expect OQ’s credit metrics to remain strong over the next two years, despite unfavourable oil prices and refining margins, with funds from operations (FFO) to debt of 50%–53% in 2025 and 54%–57% in 2026.’

In a social media post, OQ Group stated that the investment-grade rating from S&P reflects confidence in the group’s integrated business model, prudent financial management, and strategic importance to Oman’s energy sector.

‘S&P’s assessment highlights OQ’s strong liquidity position, disciplined capital structure, and key role in supporting Oman’s economic diversification and energy transition under Vision 2040. This first-time public rating from S&P affirms OQ’s position as a national energy leader committed to long-term resilience and value creation,’ OQ said.